Current as of 17 Feb 2026. Always verify current year rates.
How does TBC indexation work, and when does it apply?
Short answer:
Indexation means the general transfer balance cap can increase over time. Your personal cap depends on how much you’ve already used, so not everyone receives the full increase. Because it’s technical and can change, use the ATO’s indexation guidance and your transfer balance account information.
Key takeaways
Indexation can lift the general cap
Personal caps depend on past usage
Not everyone gets the full increase
Timing of pension events matters
Use ATO guidance for current rules
Why this matters
Indexation can change what’s possible in retirement phase. Clear understanding helps avoid accidental breaches.
Mini-plan (3-4 steps)
- Read the ATO indexation explainer.
- Check your transfer balance account (if available).
- Note key dates for pension starts/commutations.
- Consider advice if you have multiple income streams.
Related questions
Sources (so you can verify)
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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