A lifetime cap applies to the total amount of super that you can hold in the retirement phase tax free. This is called the 'general transfer balance cap'.
A snapshot of the cap
- The general transfer balance cap is $1.6 million.
- It applies to indexed benefit pensions too—but in a different way.
- It includes the total amount you have in any of your retirement pensions.
- The ATO manages the cap.
- The cap is for retirees only—and doesn’t include transition to retirement accounts.
- If you’re a Flexi Pension member and exceed the cap, the ATO will issue you a notice setting out the amount you need to remove from the pension phase (including any ‘notional earnings’).
- If you’re an affected Flexi Pension member and don’t respond to the ATO’s notice within 60 days, the ATO will write to us (or another super fund if you have more than one fund) requesting to remove the ‘excess amount’ for you—we’ll contact you to let you know your options.