Super Transfer Balance Cap Set to Increase from 1 July 2025

Posted at 15:32h in News, Superannuation by Simmons Livingstone

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From 1 July 2025, the general transfer balance cap (TBC) will increase from $1.9 million to $2 million.

This cap limits how much super you can move into the retirement (pension) phase, where earnings are tax-free. If you’ve never reached your cap before, you may be entitled to a higher personal TBC once the new limit takes effect.

For people starting a retirement phase pension on or after 1 July 2025, the new personal TBC will be $2 million.

To make sure everything is calculated correctly, the ATO relies on accurate and up-to-date reporting from your super fund. That’s why it’s important to report any events that affect your balance as soon as they happen—especially before the cap changes.

This cap increase may also impact your total super balance (TSB), which affects other things like your ability to:

Make non-concessional contributions
Trigger the bring-forward rule
Qualify for spouse contributions and government co-contributions

If you’re thinking about starting a pension, making contributions or you’re unsure how this cap increase affects you, we’re here to help. Contact us on 1800 618 800 or email admin@simmonslivingstone.com.au for personal advice.