General transfer balance cap indexation on 1 July 2025
The Australian Taxation Office has confirmed that the general transfer balance cap (TBC) will rise from $1.9 million to $2 million on 1 July 2025, providing more room for retirees to transfer savings into tax-free retirement phase accounts.
What This Means
- The cap increase is based on inflation adjustments and applies to those starting a retirement phase income stream from 1 July 2025
- If you have already begun drawing from your super, your personal TBC won’t change unless you have unused cap space
- The proportional indexation method still applies, meaning each individual’s cap will be determined based on their highest recorded balance
- Super fund members should review their balances and speak to an adviser to understand the impact on their retirement strategy.
The indexation aims to keep superannuation settings in line with the cost of living, helping retirees maximise their tax-free pension entitlements.
For more details, visit the ATO website or consult one of Intuitive Super’s SMSF specialists on 1300 856 064.
