Superannuation changes on 1 July 2021

Starting 1 July 2021, there will be superannuation changes that will impact the amount you can contribute and how much you can have in your retirement phase superannuation account.

The current $1.6 million general transfer balance cap (TBC) will be indexed to $1.7 million. There will be no single cap applied to all individuals once indexed.

How the superannuation change will affect you

You will have a personal TBC of $1.7 million if you are starting your first pension on or after 1 July 2021.

Your personal TBC will be calculated proportionally if you had a personal TBC before the said date. This is based on the highest balance of your transfer balance account:

  • $1.6 million if, at any time between 1 July 2017 and 30 June 2021, the balance of your account was $1.6 million or more; or,
  • between $1.6 million and $1.7 million in all other cases, based on the highest ever balance of your transfer balance account

Other caps affected

Please visit the ATO website for more information about the transfer balance cap changes.