Transfer balance cap¶

Definition. The transfer balance cap is a lifetime limit, set and indexed by the ATO, on the total amount of super you can move into the tax-free retirement (pension) phase.

In plain English¶

When you retire and start a super pension, the earnings in that account are generally tax-free. To keep this fair, the ATO puts a lifetime limit on how much you can move into that tax-free phase. The ATO sets the limit and lifts it over time in line with the cost of living, so you do not need to work out the figure yourself.

Related lessons¶

• Contribution caps

General information only — not tax, super or financial advice.