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.