Indexation of the general transfer balance cap (TBC) will occur on 1 July 2025. This cap will increase by $100,000 from $1.9 million to $2 million. The defined benefit income cap (DBIC) will increase to $125,000 (from $118,750) for the 2025–26 income year.
This increase has flow through impacts for individuals with a personal TBC. These individuals will be entitled to an increase of their cap if they have not previously been at, or exceeded, their cap. Their increase will be a proportion of the $100,000 and will depend on their unused cap space. Individuals starting a pension for the first time on or after 1 July 2025 will be entitled to a personal TBC of $2 million. Individuals can view their personal TBC in ATO online services through myGov.
We will calculate an individual’s personal TBC based on the information reported to and processed by us. To help individuals have a clear understanding of their position, we encourage funds and advisers to report all TBC events when they occur and as early as possible before 1 July 2025 indexation start date.
Indexation of the general TBC has flow through consequences for the Total Super Balance (TSB). The TSB influences an individual’s non-concessional contributions cap, non-concessional bring forward arrangement, and eligibility for spouse tax offset and co-contributions.
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