There are ways todo what you are saying, without making the TBC...

There are ways todo what you are saying, without making the TBC reach 1.3M and keep it at 1M. The TBC can come down. Pension vs lump sum.

As suggested, holistic financial advice, would be recommended as there may be other elements that need to be considered.

The highest water mark is about indexation of the un-used TBC balance - like that will happen come 30 June 2023.

So you could keep your TBC at $1M, and the highest mark at $1M and complete the re-contribution, if done correctly.