My super will soon hit the $2m cap. What should I do with the excess?

July 5, 2026 — 3:01am

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I am 59 years old, and my superannuation balance is approaching the $2 million transfer balance cap. I expect to keep working for a few years and accumulate more. Where should I put the additional funds? Is it better to add into my super account, or start to create investments outside of super?

Balances over the transfer balance cap (recently it became $2.1 million) remain in the accumulation phase and are taxed at 15 per cent on earnings and 10 per cent on capital gains. This is an attractive outcome for most people with significant wealth, so I wouldn’t be at all concerned about overshooting your cap.

Indeed, it is likely to be a sensible strategy. Once retired you can always take that money out anyhow, so if at some point in the future it no longer made sense to pay that tax, you would simply withdraw the funds. This “excess” pool of savings can also........

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