8.1. What is the total superannuation balance (TSB)?
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, which is $1.9 million from 1 July 2023.
| How is the total superannuation balance calculated? |
Adding together:
- the accumulation phase value of super interests that are not in the retirement phase
- the retirement phase value of super interests
- the amount of each roll-over super benefit not already included in the accumulation phase value or the retirement phase value. This is any rollovers that are in transit between super funds on 30 June.
- the outstanding limited recourse borrowing arrangement (LRBA) amount in an SMSF, or small APRA fund entered into from 1 July 2018, if either:
- the LRBA is with an associate of the fund
- member have satisfied a condition of release with a nil cashing restriction
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Then subtracting:
- any personal injury or structured settlement contributions that have been paid into members' super funds.
- Further detail can be found by accessing LCR 2016/12 Superannuation reform: Total Superannuation balance
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Total superannuation balance affects other superannuation measures
A member's total superannuation balance is relevant for their eligibility for certain superannuation measures including:
- 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.
