Transfer Balance Cap Calculator

Calculate your personal TBC. Understand proportional indexation and optimize your tax-free pension income.

What is the Transfer Balance Cap?

The Transfer Balance Cap (TBC) is the maximum amount you can transfer into tax-free pension phase. The general cap for 2025-26 is $2.0 million.

Once your super is in pension phase, all earnings are tax-free. The TBC prevents unlimited tax-free growth by capping how much you can have in pension phase.

How Your Personal Cap Works

Your personal TBC depends on when you first started a pension and how much you transferred:

  • Never used your cap: You get the full general cap ($2.0M)
  • Used part of your cap: Proportional indexation applies
  • Used all of your cap: Your cap is locked at the amount when you started

Proportional Indexation Example

Say you started a $500,000 pension in 2018 when the general cap was $1.6M. You used 31.25% of your cap.

When the cap increased to $1.9M (2023), you got 68.75% of the $300K increase. Your personal cap became $1,806,250.

When it increased to $2.0M (2025), you got 68.75% of the $100K increase. Your personal cap is now $1,875,000.

Credit and Debit Events

Your TBC balance increases (credits) when you start a pension, and decreases (debits) when you commute a pension back to accumulation or withdraw it.

Managing these events is critical for maximizing your tax-free income.

Calculate Your Personal TBC

⚠️ Simplified Calculation: This shows basic proportional indexation. For credit/debit event tracking, couples optimization, and detailed pension strategies, use the full calculator.

Amount transferred to pension phase when you first started

Need detailed TBC tracking? The full calculator includes credit/debit event management, couples strategies, and pension optimization. Launch full calculator →

Model Your TBC Strategy

See how proportional indexation affects your personal cap and optimize tax-free pension income with couples strategies.

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Frequently Asked Questions

What is the Transfer Balance Cap?
The Transfer Balance Cap is the maximum amount you can transfer into tax-free pension phase. The general cap is $2.0 million for 2025-26. Earnings in pension phase are tax-free, so this cap prevents unlimited tax-free growth.
How does proportional indexation work?
If you've never used your cap, you get full indexation when the general cap increases. If you've used part of your cap, your personal cap increases proportionally. For example, if you've used 50% of your cap, you get 50% of any indexation increase.
What happens if I exceed my TBC?
If you exceed your TBC, you'll receive an excess transfer balance determination from the ATO. You must remove the excess within 60 days or face excess transfer balance tax at 15% (first breach) or 30% (subsequent breaches) on the notional earnings.
Can couples use each other's TBC?
No, each person has their own TBC. However, couples can optimize by balancing pension accounts between partners, recontributing pension payments to a spouse's super, or using contribution splitting to maximize combined tax-free income.

Disclaimer: This calculator is for informational purposes only and does NOT constitute financial advice. SuperCalc Pro Pty Ltd does not hold an Australian Financial Services License (AFSL). Always consult a licensed financial adviser for advice specific to your circumstances.