Indexing the Personal Transfer Balance Cap

The General Transfer Balance Cap (GTBC) was introduced from 1 July 2017 and is a cap on the how much can be transferred to a retirement phase pension for a member. The cap ultimately restricts the entitlement a fund has to receive a tax exemption on retirement phase earnings. On face value the GTBC concept is relatively straight forward.

Each individual will have their own personal transfer balance cap (PTBC) which will initially align with the GTBC in the year they commence a retirement phase pension. Based on how much an individual commences a pension for will determine how their PTBC is indexed.

With an initial GTBC of $1.6 million, individuals who commenced a retirement phase pension prior to the first indexation date will have had an initial PTBC of $1.6 million. With indexation occurring three times since the measure was introduced, the GTBC now sits at $2 million, and this fact sheet will explain how it works.

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Bring Forward Contributions

The ability to bring-forward future year entitlements to make non-concessional contributions has been in place for many years now. Prior

How to view your Transfer Balance Cap

From 1 July 2017 a cap was introduced to limit how much can be transferred to a retirement phase pension

Insurance Premiums – To claim or not to claim a tax deduction

There are strategic reasons why you might not claim a tax deduction on life or Total and Permanent Disability (TPD)

Understanding super terminology

An individual’s Transfer Balance Cap (TBC) and Total Superannuation Balance (TSB) are calculated differently and are separate concepts. When the

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