The general transfer balance cap is set to increase to $2 million on 1 July 2025, following the release of quarterly CPI data.
With all groups CPI figure reaching 139.4 for the December 2024 quarter, the general transfer balance cap will be indexed for the 2025–26 year, increasing to $2 million from $1.9 million.
The cap limits the amount of money that can be transferred into the retirement phase in super. The increase means clients commencing their first retirement phase income stream in 2025–26 will start with a personal transfer balance cap of $2 million.
Clients who already have a personal transfer balance cap that they have not fully utilised at any time in the past will see their cap increase on 1 July 2025 by a smaller amount due to proportional indexation.
This increase also affects other superannuation rules and concessions including the total superannuation balance, which will also increase to $2 million.
A member’s total super balance at 30 June 2025 will need to be less than $2 million for them to access the standard non-concessional contributions cap.
The 3-year bring forward rule will be limited against a higher Total Superannuation Balance as per below:
To 30 June 2025
From 1 July 2025
If you have any queries or concerns or need further advice and support about superannuation changes please don’t hesitate to reach out to the team at MGI.
