Will I have to pay tax on my super if it grows over $2 million?

June 7, 2026 — 5:00am

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I have a question regarding the transfer balance cap (TBC).  Say, at the time I retire, I have just under $2 million in super.  Then, if I draw down the minimum from my pension account each year, but because of decent growth hopefully (maybe challenging in the current environment), my super balance goes above the $2 million mark. Will any amount above $2 million be subject to 15 per cent tax, even though I was technically under the $2 million limit at retirement?  Also, will the 15 per cent tax be only on the pro rata earnings above $2 million, or 15 per cent on the amount above $2 million? 

You’ve got nothing to worry about here. The assessment for the TBC only occurs at the point that you commence a pension.

What happens after that is of no consequence. It is quite common to see pension balances grow in the first decade or so of retirement if you only draw the minimum........

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