Transfer balance cap will be indexed from $1.6 to $1.7 million from 1 July 2021

From 1 July 2021, the general transfer balance cap will be indexed from $1.6 to $1.7 million.

When the general transfer balance cap is indexed to $1.7 million, there will not be a single cap that applies to all individuals. Every individual will have their own personal transfer balance cap of between $1.6 and $1.7 million, depending on their circumstances.

If you start a retirement phase income stream for the first time on or after 1 July 2021, you will have a personal transfer balance cap of $1.7 million.

If you had a transfer balance account before 1 July 2021, your personal transfer balance cap will be:

• $1.6 million if, at any time between 1 July 2017 and 30 June 2021, the balance of that account was $1.6 million or more
• between $1.6 and $1.7 million in all other cases, based on the highest ever balance of your transfer balance account.