Thanks to HockeyMonkey for the links and explanation to these figures and where to find them.
Concessional cap
The concessional contribution cap was reset in 2017-18 from $30,000 to $25,000 and is to be increased in increments of $2,500 in line with AWOTE (average earnings), not CPI (inflation). AWOTE at that time was 1,533.40.
Therefore, the figures at which it is expected to increase would be as follows:
| CC Cap | AWOTE | |||||
| $27,500 | 27,500/25,000 | x | 1,533.40 | = | 1,686.74 | Indexed in 2021/22 |
| $30,000 | 30,000/25,000 | x | 1,533.40 | = | 1,840.08 | Indexed in 2024/25 |
| $32,500 | 32,500/25,000 | x | 1,533.40 | = | 1,993.42 |
Note that figures used for indexing are based on the quarter ending on 31 December just before the start of the relevant income or financial year.
End of year AWOTE figures come out towards the end of February each year.
The $27,500 limit of 1,686.74 was passed at the end of 2020 and was indexed in the financial year 2021-22.
The $30,000 limit of 1,840.08 was passed at the end of 2023 and was indexed in the financial year 2024-25.
For the $32,500 limit of 1,993.42 to be passed for the 2025/26 financial year, since the 2023 end-of-year AWOTE figure was 1,888.80, it would require an annual increase in average earnings of 1,993.42/1,888.80 = 5.54%.
Non-concessional cap
The non-concessional contribution cap is 4 times the concessional contribution cap, so it increases at the same time.
Transfer Balance Cap (TBC)
The TBC was most recently set in the same financial year as the concessional contribution cap, 2017-2018 at $1.6m, and is increased in increments of $100,000 in line with CPI (inflation), not AWOTE. CPI at that time was 110.
Therefore, the figures at which it is expected to increase would be as follows:
| TBC | CPI Req’d | |||||
| $1.7m | 1.7/1.6 | x | 110 | = | 116.875 | Indexed 2021/22 |
| $1.8m | 1.8/1.6 | x | 110 | = | 123.75 | Surpassed |
| $1.9m | 1.9/1.6 | x | 110 | = | 130.625 | Indexed 2023/24 |
| $2.0m | 2.0/1.6 | x | 110 | = | 137.5 | |
| $2.1m | 2.1/1.6 | x | 110 | = | 144.375 |
Note that even though CPI figures come out quarterly, figures used for indexing in super are based on the quarter ending on 31 December just before the start of the relevant income or financial year.
The TBC was raised to $1.7m in 2021/22 after it surpassed 116.875 in the CPI figure at the end of 2020.
The TBC was raised to $1.9m in 2023/24 after it surpassed both 123.75 and 130.625 in the CPI figure at the end of 2022.
The $2.0m TBC figure of 137.5 failed to pass in the December 2023 quarter when it reached 136.1.
For the TBC to be raised to $2.0m in 2025/26, CPI will need to reach 137.5 by the 2024 December quarter figure, which would require an increase of 137.5/136.1 = 1.03% for the 2024 year. This has already occurred in the 2024 July figures.
For the TBC to be raised to $2.1m in 2025/26, CPI will need to reach 144.375 by the 2024 December quarter figure, which would require an increase of 144.375/136.1 = 6.08% for the 2024 year or 144.375/138.8 = 4.02% for the in the second half of the year (i.e., at a rate of 8.4% p.a.).
Why are these relevant?
These are useful for specific strategies.
For instance, under the bring-forward rule, once the rule is triggered by contributing over the current year’s non-contribution cap, you can only contribute 3 times that amount over that and the following two years, regardless if the cap is increased during that time. If it is likely the non-concessional contribution cap will increase in the following year and you have more than 3 years’ worth of contributions, it may be better to contribute only a single year’s worth of non-concessional contributions and wait until the following year to contribute up to 3 years’ worth of contributions at a higher limit.
Another example is the TBC. Once you move your super into an account-based pension, you ‘set’ your own personal TBC, and only the remaining proportion of the the general TBC at that time continues to grow with inflation. If you expect the general TBC to increase, it may be worth considering whether to hold off moving to an account-based pension.