The release of the CPI index number for December 2022 has confirmed that the superannuation “general transfer balance cap” will increase by $200,000 to $1.9m for 2023-24 (up from $1.7m for 2022-23).
If an individual starts to have their first retirement phase income stream on or after 1 July 2023 their lifetime personal transfer balance cap will be set at $1.9m.
However, if an individual started to have a transfer balance account before 1 July 2021, they will have a personal transfer balance cap between $1.6m and $1.7m (which may be subject to proportional indexation on 1 July 2023 if they have not fully utilised their personal cap).
The “total superannuation balance” threshold for making non-concessional contributions (which is tied to the general transfer balance cap) will also increase to $1.9m for 2023-24 (up from $1.7m for 2022-23).
The “defined benefit income cap” will increase to $118,750 for 2023-24 (ie $1.9m divided by 16).
We will publish more articles on the opportunities for your SMSF due to this increase.