Transfer balance cap
The transfer balance cap isn’t static. It’s been designed to increase over time to keep up with inflation in $100,000 increments. Find out your personal balance cap and avoid paying excess balance tax.
What is the transfer balance cap?
The transfer balance cap (TBC) is a limit on the total amount of super that can be converted into an retirement income stream such as CSCri.
When you retire, you can choose to transfer the savings you have accumulated in your super account into a retirement income stream such as CSCri. The cap applies per person across all retirement income streams.
*This information does not apply to Defined Benefit members. For information about transfer balance caps for Defined Benefit members, read Transfer Balance Cap.
What is the general transfer balance cap?
If you open a retirement income stream account for the first time on or after 1 July 2025, your cap is $2 million1. The general transfer balance cap is indexed to increases in the inflation rate in $100,000 increments and may change on 1 July each year.
For more information visit the ATO.
| Date | General transfer balance cap |
|---|---|
| 1 July 2025 | $2 million |
| 1 July 2023 | $1.9 million |
| 1 July 2021 | $1.7 million |
| 1 July 2017 | $1.6 million |
1Note: This cap may change over time. For more information visit the ATO.
What is my personal transfer balance cap?
The cap applies to the combined balances you hold in any retirement income stream. You can view your personal transfer balance cap by linking your myGov account to your ATO account.
Your personal transfer balance cap can be less than the general cap. This is determined by:
- when you started your retirement income stream; and
- any amounts you have previously transferred.
What isn’t counted towards my personal transfer balance cap?
The cap doesn’t apply to:
- Transition to retirement accounts
- Age Pension (or other government payments)
- Foreign pensions
- Structured settlements and personal injury payouts
- Investment earnings on your retirement income stream.
Transfer balance cap FAQs
What if my retirement account balance changes?
If the total amount in your retirement accounts grows to more than your transfer balance cap through investment earnings, this isn’t considered exceeding your cap. You don’t need to do anything if your retirement income account balance grows over your personal cap amount.
If you’ve reached your personal cap and the amount in your retirement phase account(s) decreases over time, you can’t top it up. However, if you haven’t reached your cap, you can restart your CSCri account to add money to it. These new amounts count towards your transfer balance cap.
What if I exceed my personal transfer balance cap?
You’ll need to move the excess amount out of the retirement income stream; this is known as a commutation. If you exceed your personal cap, you’ll need to pay tax on notional earnings from the excess amount. This excess transfer balance tax is charged at 15% from the day you first go over your cap. If you go over your cap for a second time, you will be taxed at 30% on notional earnings. For more information about excess contributions tax and how it is calculated, visit the ATO.
If you think you’ve exceeded your cap or you’ve received a commutation authority from the ATO, contact us immediately to avoid paying further excess transfer balance tax.
Can I start a retirement income stream if my super balance is higher than my personal transfer cap?
If the amount in your accumulation account exceeds your personal cap, you may leave the excess in your accumulation account.
Which transfer balance cap applies to me?
You can view your personal transfer balance cap by linking your myGov account to your ATO account.
How much should I transfer into my retirement pension?
The amount you choose to transfer from an accumulation account into a retirement pension will depend on your personal life circumstances.