Balance cap, effective since 1 July 2017, a $1.6 million superannuation transfer balance cap has been imposed on the lifetime amount of superannuation that an individual can transfer into retirement phase. Subsequent earnings on this retirement phase, from July 2017, will not be required to be withdrawn, or reclassified.

The cap applies to existing and future retirees, and the $1.6 million cap will be indexed in $100,000 increments, in line with increases in the consumer price index (rate of inflation).

Note that special rules apply to defined benefit pensions. The lack of grandfathering indicates this policy applies retrospectively. For more information on this policy see SuperGuide articles: