![\"\"](\"https:\/\/acctweb.com.au\/images\/super-increase-nov21.jpg\")
<\/p>\nAn industry consultant has reminded practitioners the indexation measure to be applied to the general transfer balance cap will have implications for other elements of the superannuation system as well that are unrelated to income streams.<\/p>\n
<\/p>\n
.<\/p>\n
The general transfer balance cap will shift from $1.9 million to $2 million from 1 July and BT technical consultant Michael Tran drew attention to the link it has with other superannuation limits such as the total super balance (TSB) with reference to some specific actions available to fund members.<\/p>\n
\u201cThe total super balance thresholds linked to the eligibility for co-contributions and the spouse contribution tax offset will also increase by $100,000 [going from $1.9 million to $2 million on 1 July],\u201d Tran noted.<\/p>\n
\u201c[That means] from 1 July if a client\u2019s TSB is greater than this figure at the most recent 30 June, which will be 30 June 2025, for the next financial year the client will not receive these benefits.<\/p>\n
\u201cSo they won\u2019t receive a co-contribution from the government, they won\u2019t receive the spouse contribution tax offset in their tax return if their TSB is going to be higher than that cap.<\/p>\n
\u201cIt actually would mean that the client would [have exceeded] their non-concessional cap as a result as well.\u201d<\/p>\n
Further, he took the opportunity to confirm the concessional contributions cap is not changing as its indexation measure is tied to average weekly ordinary time earnings (AWOTE) and not the consumer price index.<\/p>\n
However, he predicted these limits would change in the near future given the AWOTE figures the Australian Bureau of Statistics published last Thursday.<\/p>\n
\u201cThe concessional [contributions] cap will remain the same because the index number was not sufficiently large enough to cause it to increase,\u201d he explained.<\/p>\n
\u201cThe concessional [contributions] cap only changes when [the AWOTE statistic] reaches a multiple of 2500 and the number fell just short of that.<\/p>\n
\u201cHowever, it does look very likely that the concessional cap will increase after July 2026. So not July 2025 in terms of the next financial year, but the following financial year.\u201d<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Darin Tyson-Chan
\nFebruary 26, 2025
\nsmsmagazine.com.au<\/p>\n","protected":false},"excerpt":{"rendered":"
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