In this guide
The Transfer Balance Cap (TBC) will be increased with indexation from $1.9 million to $2 million on 1 July 2025. Indexation will continue to increase the cap in $100,000 increments in future. If indexation increases the cap, the new amount takes effect on 1 July of the new financial year.
Indexation creates opportunities for some current retirees to increase the amount in their tax-free account-based superannuation pension. For those who are on the cusp of retirement, it may be worth delaying a super pension until after indexation takes effect.
Remind me, what is the TBC?
In a nutshell, your TBC is the maximum amount you can transfer to a tax-free pension account.
For more on the TBC, see SuperGuide article Transfer balance cap (TBC) for super pensions: How it works.
Good to know: When you start your first pension account, the ATO establishes a transfer balance account (TBA) to track your TBC. Your TBA is a record of all the ins and outs (credits and debits) that count towards your TBC.
