Transfer balance cap

From 1 July 2017, the total amount of super you can transfer into a tax-free retirement account is capped. This is called the transfer balance cap.

The general transfer balance cap began on 1 July 2017. This is a lifetime limit on the total amount of super that can be transferred into tax-free retirement phase income streams, including most pensions and annuities.

If you have amounts in retirement phase, then you will have a transfer balance account.

All retirement phase income streams and retirement phase death benefit income streams you receive count towards your transfer balance cap.

The age pension (or other types of government payments) and pensions received from foreign super funds don't count towards your transfer balance cap.

Indexation of the transfer balance cap

The general transfer balance cap is reviewed each financial year and indexation occurs in line with the consumer price index in $100,000 increments.

The first tranche of indexation of the general transfer balance cap occurred on 1 July 2021. Before 1 July 2021, all individuals with a transfer balance account had a personal transfer balance cap of $1.6 million.

On 1 July 2021, the general transfer balance cap increased to $1.7 million.

Individuals now have their own personal transfer balance cap, depending on their circumstances. Your cap:

• will be equal to the general transfer balance cap that applied when you started your first retirement phase income stream, and
• may be increased by proportional indexation depending on the highest ever balance you have held in retirement phase.

If you have no cap space or an excess transfer balance, you are not entitled to indexation of your transfer balance cap.

You can view your personal transfer balance cap in ATO online services, through myGov.

For more information on the general transfer balance cap, indexation and the personal transfer balance cap, see Indexation of the general transfer balance cap.

If you hold a capped defined benefit income stream or death benefit income stream, see the following pages for more information:

• Transfer balance cap – capped defined benefit income streams
• Death benefit income streams.