This page is designed to give you a clear explanation of how the Transfer Balance Cap (TBC) and the Total Super Balance (TSB) work, how they interact and what this means in practical terms for contributions, pensions and recontribution strategies.
Some background
From 1 July 2017, Australia’s super system introduced new limits to replace the proposed (but never implemented) Lifetime Superannuation Cap.
Two key concepts now apply:
- Transfer Balance Cap (TBC) – limits how much super can be transferred into retirement‑phase pensions.
- Total Super Balance (TSB) – measures how much super a person has in total and determines contribution eligibility.
The Transfer Balance Cap (TBC)
What is the TBC?
The Transfer Balance Cap limits the total amount of superannuation that can be held in retirement‑phase income streams (such as account‑based pensions).
- The general TBC in the 2025/26 financial year is $2.0 million
- It will increase to $2.1 million from 1 July 2026
Personal TBC
Each individual has a personal Transfer Balance Cap, which is determined when they first start a retirement‑phase pension.
Key rules:
- Your personal TBC is “locked in” at the time your first pension starts
- You may receive partial indexation in the future if you do not use all of your cap
- You can never exceed your personal Transfer Balance Cap, even if your balance falls later
Importantly, this cap limits how much can be in pension phase at any one time, not how much you can hold in super overall.
Total Super Balance (TSB)
What is TSB?
Your Total Super Balance is the total value of all your superannuation interests as at 30 June of the previous financial year.
It includes:
- Accumulation accounts
- Retirement‑phase pensions
- Rollovers in transit
Why TSB matters
Your TSB determines whether you are eligible for:
- Non‑concessional (after‑tax) contributions
- The bring‑forward rule
- Spouse contributions
- Government co‑contributions
TSB is not a cap itself, but a threshold test used under contribution rules.
Some examples
Example 1 – Starting a pension at the full cap
Taff is a 60‑year‑old who starts an account‑based pension with $2.0 million in March 2026.
This means:
- Taff’s personal Transfer Balance Cap is $2.0 million
- This is the maximum amount that he can ever hold in retirement phase at one time
What contributions can he make?
While he can’t add money to his existing account-based pension, he may still wish to contribute to his super account. The amount that Taff can contribute to his super depends on his Total Super Balance at 30 June 2025 (that is, at the end of the previous financial year):
- If his TSB at 30 June 2025 was $2.0 million, then no non‑concessional contributions are allowed in this financial year (2025–26)
- If his TSB at 30 June 2025 was below $2.0 million, then non‑concessional contributions may be made in this financial year (2025–26), subject to the usual caps
Rolling back a pension
If Taff later rolls back part of his pension to accumulation:
- His personal Transfer Balance Cap does not increase
- He may recommence a pension later, but only up to his original $2.0 million cap
The rollback creates a debit in the transfer balance account, but the original cap remains unchanged.
Example 2 – Starting a pension below the cap
Kristy is a 60‑year‑old who started an account‑based pension with $1.8 million in March 2026.
Her initial position is:
- General TBC at the time: $2.0 million
- The amount Kristy used: $1.8 million
- Unused cap: $200,000 (10%)
Indexation from 1 July 2026:
When the general TBC increases to $2.1 million at 1 July 2026, it’s an increase of $100,000. Kristy is entitled to 10% of the increase. For Kristy, that is an increase to her personal TBC of $10,000, thanks to indexation.
What is her new personal TBC?
Her personal TBC becomes $2,010,000. The total that Kristy can ever hold in pension phase is = $2.01 million
This means that Kristy can move an additional $10,000 into retirement phase beyond her original $2.0 million limit.
Important: Once the full personal Transfer Balance Cap is used, all future indexation is lost.
Contributions after starting a pension
Starting a pension does not stop future contributions.
The ability to contribute depends solely on your Total Super Balance at 30 June of the previous financial year.
This allows strategies such as:
- Withdrawing funds from pension phase
- Reducing TSB at 30 June
- Recontributing in a later year (subject to contribution caps and age rules)
Key takeaways
- The Transfer Balance Cap limits how much super can be in pension phase
- The Total Super Balance determines contribution eligibility
- Your personal TBC is set when you start your first pension
- Unused cap may receive partial indexation
- Rolling back a pension does not increase your personal cap
- Contribution strategies must always reference TSB at 30 June