This article provides an overview of the General Transfer Balance Cap indexation on 1 July 2025 in Class and impact on different groups of individuals including:
Overview
On 1st July 2025, the General Transfer Balance Cap (GTBC) was indexed by $100,000 to $2.0 million. This has a flow through impacts on individual's Personal Transfer Balance Cap (PTBC) with entitlement for indexation. This means individuals now have a Personal Transfer Balance Cap between $1.6 million and $2.0 million.
This article provides information about the changes in Class and scenarios for different groups of individuals to determine indexation entitlement as follows:
Commenced first-ever retirement phase income stream on or after 1st July 2025
Individuals who commenced their first-ever retirement phase income stream from 1st July 2025 are entitled to the full indexation and have a Personal Transfer Balance Cap of $2.0 million.
TBA reached or exceeded PTBC prior to 1st July 2025
Individuals who had a Transfer Balance Account that reached or exceeded their Personal Transfer Balance Cap before 1st July 2025, will not be entitled to any indexation. In other words, these individuals' Personal Transfer Balance Cap will remain the same as they have fully utilised their TBA.
TBA below their PTBC prior to 1st July 2025
Individuals who have partially used up their available personal TBC prior to 1st July 2025 will be entitled to proportional indexation of their Personal Transfer Balance Cap. This can be worked out based on the individuals' highest ever transfer balance at the end of a day compared to their Personal Transfer Balance Cap on that day. The unused cap is expressed as a percentage, then multiplied by $100,000 (the General Transfer Balance Cap increment) to calculate the proportional entitlement to indexation.
Worked Examples
For a detailed explanation of the step by step calculation of Personal Transfer Balance Cap indexation in Class refer to the User Guide article here
Using Class user interface of the Personal Transfer Balance Cap, we have created some of the examples and calculations as shown in the diagram and table below:
Example 1: An individual who has never used any of the transfer balance amount
Example 2: An individual who has used up all the transfer balance amount on 1 July 2017
Example 3: An individual who has partially used up the transfer balance amount throughout all the indexation periods
| Scenario | 1 | 2 | 3 |
| Indexation date 01 July 2021 | |||
| Indexation Entitlement | Yes | No | Yes |
|
Highest Ever Transfer Balance prior to Indexation date |
$0 | $1,600,000 | $1,000,000 |
| Date of Highest Transfer Balance Amount prior to Indexation date | N/A | 1/07/2017 | 1/07/2017 |
| Personal Transfer Balance Cap on date of Highest Transfer Balance Amount | $1,600,000 | $1,600,000 | $1,600,000 |
| Unused Cap Percentage | 100% | 0% | 38% |
| Indexation Amount Entitlement | $100,000 | $0 | $38,000 |
| Personal Transfer Balance Cap | $1,700,000 | $1,600,000 | $1,638,000 |
| Indexation date 01 July 2023 | |||
| Indexation Entitlement | Yes | No | Yes |
| Highest Ever Transfer Balance prior to Indexation date | $0 | $1,600,000 | $1,330,000 |
| Date of Highest Transfer Balance Amount prior to Indexation date | N/A | 1/07/2017 | 1/07/2022 |
| Personal Transfer Balance Cap on date of Highest Transfer Balance Amount | $1,600,000 | $1,600,000 | $1,638,000 |
| Unused Cap Percentage | 100% | 0% | 19% |
| Indexation Amount Entitlement | $200,000 | $0 | $38,000 |
| Personal Transfer Balance Cap | $1,900,000 | $1,600,000 | $1,676,000 |
| Indexation date 01 July 2025 | |||
| Indexation Entitlement | Yes | No | Yes |
| Highest Ever Transfer Balance prior to Indexation date | $0 | $1,600,000 | $1,430,000 |
| Date of Highest Transfer Balance Amount prior to Indexation date | N/A | 1/07/2017 | 1/06/2025 |
| Personal Transfer Balance Cap on date of Highest Transfer Balance Amount | $1,600,000 | $1,600,000 | $1,676,000 |
| Unused Cap Percentage | 100% | 0% | 15% |
| Indexation Amount Entitlement | $100,000 | $0 | $15,000 |
| Personal Transfer Balance Cap | $2,000,000 | $1,600,000 | $1,691,000 |
Other related Class articles:
Tracking of Transfer Balance Account