For taxation purposes, the income stream i.e. 'police pension' paid to members is known as a 'capped defined benefit income stream'.
The Transfer balance amount is calculated using a 'special value' for capped defined benefit income streams as per s294-135(1) & (2) of the Income Tax Assessment Act (ITAA). The special value formula is the (fortnightly gross pension/14*365*16). This value is reported on 1 July 2017 for income streams which commenced prior to that date, and after that date is the value of the income stream on commencement of receipt.
The Tax offset applicable to Police Super income streams is known as Tax offset (T2), and capped at 10% on $100,000- i.e. any amount of pension over $100,000 will be taxed at the full rate.