Transfer Balance Cap Increase

Posted at 16:39h in News, Retirement, Superannuation, Tax by Simmons Livingstone

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With the latest CPI update, the general transfer balance cap (TBC) will rise from $1.9 million to $2 million on 1 July 2025. This could open up tax-effective retirement and super contribution opportunities for some individuals.

Key Points to Consider

Retirement Income Streams

If you start a retirement phase pension after 1 July 2025, you’ll have access to the new $2 million TBC.
If you’ve already begun a retirement income stream, your personal TBC will vary between $1.6 million and $2 million, depending on past indexation. You can check this via MyGov before making changes.

Non-Concessional Contributions (NCCs)

The rules for super contributions may also shift, depending on upcoming earnings data.
Right now, individuals with a total super balance (TSB) over $1.9 million (as of 30 June) can’t make non-concessional contributions.
From 1 July 2025, those with a TSB under $2 million on 30 June 2025 may have new contribution opportunities.

If you’re considering changes to your retirement strategy or super contributions, speak with Simmons Livingstone for tailored advice at 1800 618 800 or via email admin@simmonslivingstone.com.au.