From 1 July 2025, the general transfer balance cap for superannuation will increase by $100,000 to $2.0 million, following the release of the December 2024 Consumer Price Index (CPI).
What Is the Transfer Balance Cap?
The transfer balance cap is a lifetime limit on how much super you can transfer into a retirement phase income stream.
✅ Earnings on super in the retirement phase are tax-free.
✅ Withdrawals after age 60 are generally tax-free.
This cap ensures super tax concessions are fairly distributed and helps keep the super system sustainable.
How Has the Cap Changed Over Time?
The cap is adjusted based on CPI (not wages) in $100,000 increments:
- 2017–2021: $1.6 million
- 2021–2023: $1.7 million
- 2023–2024: $1.9 million
- From 1 July 2025: $2.0 million
How This Affects You
Your personal transfer balance cap is set when you start a retirement phase income stream:
- If you start after 1 July 2025, your cap will be $2.0 million.
- If you started before 1 July 2025, your cap will be between $1.6 million and $1.9 million, depending on when you started.
- If you haven’t used your full cap, a proportional increase may apply from 1 July 2025.
What Happens If You Exceed Your Cap?
If you go over your personal transfer balance cap:
❌ The excess must be withdrawn or transferred back into your super accumulation account.
❌ You’ll need to pay an excess transfer balance tax.
❌ The ATO will notify you with an excess transfer balance determination.
Tracking Your Super Balance
To keep track of your cap, you can check your transfer balance account using ATO online services via myGov. This helps you monitor credits, debits, and any excess amounts over your cap.
For personalised guidance, speak with your super fund or contact our office today.