Upcoming personal transfer balance cap changes

New proportionally indexed personal transfer balance caps are expected to display in ATO online from 11 July 2025.

The general transfer balance cap (TBC) will be indexed on 1 July 2025, increasing from $1.9 million to $2 million. This increase will impact members with a personal TBC. Members who have commenced a pension prior to 1 July 2025 and haven’t previously reached or exceeded their personal cap will be eligible for a proportional increase, based on their highest ever transfer balance and the amount of unused cap space.

Members starting a pension for the first time on or after 1 July 2025 will be entitled to a personal TBC of $2 million.

Display of updated transfer balance caps

Although indexation of the general TBC takes effect on 1 July 2025, updated personal transfer balance caps are not expected to display until 11 July 2025.

From 11 July:

• Members will be able to view their updated personal TBC in ATO online services.
• Agents will be able to view their client’s details in Online services for agents.

Members’ personal TBC will be calculated based on the information reported to and processed by the ATO.

To ensure members have a clear understanding of their cap entitlements, the ATO encourage funds and advisers to report all TBC events as they occur and, where possible, before 1 July 2025.

Reporting between 1 and 11 July 2025

You can continue to report TBC events to ATO between 1 and 11 July 2025, and the ATO will process these reports as usual. However, during this period, updates will not be reflected in a member’s transfer balance.

As a result, between 1 and 11 July the ATO will not issue or revoke:

• excess transfer balance determinations we have sent to a member
• commutation authorities the ATO have sent to a fund.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.