Confusing your super caps is a common mistake

Executive Manager, SMSF Technical & Private Wealth, SuperConcepts
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Since 1 July 2017, your super is controlled by two caps – your Transfer Balance Cap and your Total Super Balance.  Both caps have $1.6 million limits, which doesn’t make it any easier if you wish to work out which one applies.

To put it simply:

  • Your Transfer Balance Cap (TBC) controls how much you can transfer to retirement phase to commence income streams (pensions).
  • Your Total Super Balance (TSB) is calculated every 30 June and controls the amount of non-concessional contributions, other super concessions and ATO reporting requirements.

Let’s look at the two caps in more detail.

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