Super Transfer Balance Cap increases to $2.1 million

Last week the release of the December 2025 Consumer Price Index resulted in the Transfer Balance cap for 2026-27 increasing from $2m to $2.1m.

The Transfer Balance Cap (TBC) is the maximum amount of superannuation that a person can move into a tax-free retirement phase income stream, such as an account-based pension. From 1 July 2026 for those people who have not utilized their personal TBC, they will be able to transfer an additional amount into the pension phase once they retire. For existing superannuation pensioners, the increase in their personal TBC will depend on a complex calculation where they receive an increase in their TBC based on the proportion of their TBC still unutilized.

Those that have already used all their TBC will not receive any increase in their TBC.

The general transfer balance cap is also used to determine the amount of non-concessional contributions that a person can make to super. If a person’s superannuation balance is under $2.1m on 30 June 2026, then they would be able to make additional non-concessional contributions to superannuation.

The calculation of the concessional contribution cap, currently $30,000, will be determined based on the increase in average weekly ordinary time earnings for the December 2025 quarter, which is due for release in late February. Expectations based on most recently available figures indicate the cap will increase to $32,500 on 1 July 2026.

An increase in the concessional cap to $32,500 would result in the annual non-concessional contribution cap increasing from the current $120,000 to $130,000, and the three-year bring forward cap to $390,000.

All the above changes will have implications for superannuation contribution strategies, including decisions around the timing of when to trigger the bring-forward rule for those wishing to maximise their non-concessional superannuation contributions. Before making any firm plans to start a retirement pension or make substantial contributions to superannuation, we recommend you seek advice from one of our experienced advises to ensure you make the most of the new caps.

Any financial product advice provided in this blog is general in nature.  It does not take into account your needs, financial situation or objectives.  Before acting on the advice, you should consider whether it is appropriate to you in light of your needs financial situation and objectives.