From 1 July 2025, the general transfer balance cap will rise from $1.9m to $2m, enabling superannuation members to access greater tax-free earnings in the retirement phase.
The cap, which increased by $100,000, based on the December 2024 quarter CPI figures, determines how much super can be transferred into the tax-free retirement phase. Individuals entering the retirement phase in the 2025-26 financial year for the first time will have a $2m cap. Existing retirees may be eligible for a proportional cap increase depending on their individual circumstances.
This increase impacts several other superannuation thresholds, including eligibility for non-concessional contributions.
A member’s total super balance at 30 June 2025 must be less than $2 million to make the standard $120,000 non-concessional contribution. Assuming no changes to the contributions for the 2026 financial year, the total super balance thresholds for utilising the bring forward non-concessional contributions are as follows:
| Maximum NCC (with bring-forward)* | TSB at 30 June 2025 |
| $360,000 | < $1,760,000 |
| $240,000 | $1,760,000 – <$1,880,000 |
| $120,000 | $1,880,000 – <$2,000,000 |
| $0 | $2,000,000 or more |
If you have any questions on your superannuation or the change to the transfer balance cap, please contact Daniel Shaw, Director of DFKBKM and SMSF Specialist Adviser
