I may be wrong, but at the point of converting to a pension you have to have a revaluation of the fund to establish at that point in time the taxable component. If you don't you will get dinged by the ATO if they audit you. I think it require an actuarial certificate.
Best to get your accountant to validate as often accountants are not that well up on the super laws. Get it in writing from him/her as it will be very costly if not compliant.
The $165k is now $175 (IMO) and what should be done is to transfer this to yourself as an exempt payment and then pay it back into your super fund. This reduces the taxable component to some degree depending on the split when converting to a pension..
Note, an accounting entry is NOT sufficient, you must show on the bank account that the $ have actually left the super fund and gone to your bank account , and the returned. There is case law around this subtle point.
So, to do this you must have cash in the fund, or sell assets. I guess you could contribute an after tax amount of $175k if you have funds on hand, but then it is within super. Of course if you are retired or at 60 then you can take these funds right back out.
