This article provides an overview of the General Transfer Balance Cap indexation on 1 July 2026 and worked examples of different scenarios for members:
- Overview
- Commenced first-ever retirement phase income stream on or after 1st July 2026
- TBA reached or exceeded PTBC prior to 1st July 2026
- TBA below their PTBC prior to 1st July 2026
- Worked Examples
Overview
On 1st July 2026, the General Transfer Balance Cap (GTBC) was indexed by $100,000 to $2.1 million. This has 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 $2.1 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 2026
Individuals who commenced their first-ever retirement phase income stream from 1st July 2026 are entitled to the full indexation and have a Personal Transfer Balance Cap of $2.1 million.
TBA reached or exceeded PTBC prior to 1st July 2026
Individuals who had a Transfer Balance Account that reached or exceeded their Personal Transfer Balance Cap before 1st July 2026, 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 2026
Individuals who have partially used up their available personal TBC prior to 1st July 2026 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
Following the structure of the Class user interface of the Personal Transfer Balance Cap tab, below are three examples and calculations for different member scenarios:
- 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 | $1,700,000 |
$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 | $1,900,000 |
$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 |
| Indexation date 01 July 2026 |
|
|
|
| Indexation Entitlement | Yes |
No |
Yes |
| Highest Ever Transfer Balance prior to Indexation date | $0 |
$1,600,000 |
$1,530,000 |
| Date of Highest Transfer Balance Amount prior to Indexation date | N/A |
1/07/2017 |
1/06/2026 |
| Personal Transfer Balance Cap on date of Highest Transfer Balance Amount | $2,000,000 |
$1,600,000 |
$1,691,000 |
| Unused Cap Percentage | 100% |
0% |
10% |
| Indexation Amount Entitlement | $100,000 |
$0 |
$10,000 |
| Personal Transfer Balance Cap | $2,100,000 |
$1,600,000 |
$1,701,000 |
What's next:
Find out more about Tracking of Transfer Balance Account