Increase to Transfer Balance Cap

25 Jan 2023

Written by

David Busoli, Principal

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 CapCurrentFrom 1 July 2023
$220,000$1.48m-$1.59m$1.68m – $1.79m
$110,000$1.59m – $1.7m$1.79m – $1.9m

More to come.

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