No doubt you have already heard of today’s major superannuation story. The General Transfer Balance Cap (TBC) is set to increase by $200k to $1.9 Million, from 1 July 2023. Much will be written on the subject leading up to its implementation so I will limit my comments for now.
A member’s personal transfer balance cap will only increase to $1.9m if they have not already commenced a pension. Under the complex pro-rata indexation system that applies it’s hard to imagine that any two current superannuation pensioners will have the same TBC – except for those who have fully utilised their balance, of course.
The $110k non-concessional contribution limit doesn’t rely on the TBC but the thresholds governing a member’s ability to bring forward contributions does. The approximate effect will be:
| Maximum NCC Cap | Current | From 1 July 2023 |
| $330,000 | <1.48m | <$1.68m |
| $220,000 | $1.48m-$1.59m | $1.68m – $1.79m |
| $110,000 | $1.59m – $1.7m | $1.79m – $1.9m |
| NIL | >$1.7m | >$1.9m |
More to come.
