The transfer balance cap, or the amount of money that you can transfer into the retirement phase of super, will increase on 1 July.
First introduced in the 2017-18 financial year, the general transfer balance cap is increasing from $1.6 million to $1.7 million thanks to indexation.
However, it’s important to note that different caps will apply to different people.
As explained by the ATO, every individual will have their own personal transfer balance cap of between $1.6 and $1.7 million, depending on their circumstances.
If you start a retirement income stream for the first time on or after 1 July 2021, you will have a personal transfer balance cap of $1.7 million.
If you had a transfer balance account before 1 July 2021 – that is, if you ever moved money into the retirement phase of super – your personal transfer balance cap will be:
- $1.6 million if, at any time between 1 July 2017 and 30 June 2021, the balance of that account was $1.6 million or more
- between $1.6 and $1.7 million in all other cases, based on the highest ever balance of your transfer balance account.
You will be able to view your transfer balance cap information via your ATO or MyGov account online.
With super in the news, cyber criminals are carrying out phishing attacks and scams using a variety of different channels, such as email, phone or in person.
The government has put together a guide to help you spot a scam: