Transfer Balance Cap Calculator Australia

What This Calculator Does

Searching for a Transfer Balance Cap calculator or TBC calculator for Australia? This tool estimates your personal cap against the ATO general cap, how much unused space remains, and how proportional indexation applies if you have already started a pension.

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 2026-27 is $2.1 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 ($2.1M)
• 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 became $1,875,000.

From 1 July 2026 the general cap is $2.1M, so the same unused percentage shares in that further $100K increase.

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.