Total super balance
What is the total superannuation balance?
8.1. What is the total superannuation balance?
The total superannuation balance (TSB) is a way to value a member's superannuation interests in all superannuation funds. It is calculated on 30 June of the previous financial year.
From 30 June 2017, the total superannuation balance is equal to the general transfer balance cap ($1.6 million from 2017/18, rising to $1.7 million from 1 July 2021)
How is the total superannuation balance calculated?
- the accumulation phase value of any superannuation interest that is not in retirement phase. A superannuation interest is in retirement phase if it supports a superannuation income stream.
- transition-to-retirement income streams (TRIS) that are not in retirement phase
- accruing defined benefit interests with a withdrawal value
- the balance of the member's transfer balance account, i.e., balance of account based and market linked pensions (excluding pension debits/credits and personal injury contribution debits)
- any superannuation benefit which is not reflected in the accumulation phase value because it is a rollover in transit between superannuation funds on 30 June
- certain deferred superannuation income streams that have not yet become payable, but the member has not yet met a relevant condition of release
- certain of an outstanding balance under a limited recourse borrowing arrangements where the loan is with a related party, or the member has met a condition of release
Total Superannuation balance affects other superannuation measures
A member's total superannuation balance is relevant for their eligibility for certain superannuation measures.
- Carry-forward of unused concessional contributions
- Non-concessional contributions eligibility and the bring-forward of non-concessional contributions cap
- Government co-contribution
- Spouse contribution tax offset
- Segregated asset method for calculating exempt current pension income.
- Work test exemption
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Tuesday, May 4, 2021