The ATO has issued more draft guidance on the operation of the Transfer Balance Cap and related issues, coming from the changes to superannuation in the ‘fair and sustainable’ reform package.
- The ATO has finalised LCG 2017/D3 Superannuation reform: Transfer Balance Cap – Superannuation death benefits
- The ATO has finalised LCG 2016/11 Superannuation reform: concessional contributions – defined benefit interests and constitutionally protected funds.
- The ATO has released another draft Law Companion Guide on the Transfer Balance Cap: LCG 2017/D3 – Superannuation Reform: Transfer Balance Cap – Superannuation death benefits.
The ATO has issued LCG 2017/D1: Superannuation reform: defined benefit income streams – pensions or annuities paid from non-commutable, life expectancy or market-linked products – a draft Law Companion Guide (LCG). A LCG is a type of public ruling, which sets out the ATO’s view on how a recently enacted law applies.
“This draft Guideline clarifies how the defined benefit income cap applies to superannuation income stream pensions or annuities that are paid from non-commutable, life expectancy or market-linked products,” says the draft LCG.
“As with other types of superannuation income streams, the value of capped defined benefit income streams count towards an individual’s transfer balance cap. The transfer balance cap regime is designed to limit the amount of an individual’s superannuation that can be moved into the retirement phase, where it benefits from the fund earnings tax exemption.”
“Capped defined benefit income streams cannot, of themselves, result in an excess transfer balance for an individual. Instead, modifications to the general transfer balance cap rules apply.”
The is the most recent draft LCG on the Transfer Balance Cap and related issues, with several released late in 2016:
- LCG 2016/D8: Superannuation reform: transfer balance cap and transition-to-retirement reforms: transitional CGT relief for superannuation funds
- LCG 2016/D9: Superannuation reform: transfer balance cap
- LCG 2016/D10: Superannuation reform: defined benefit income streams – non commutable, lifetime pensions and lifetime annuities
- LCG 2016/D11: Superannuation reform: concessional contributions – defined benefit interests and constitutionally protected funds
- LCG 2016/D12: Superannuation reform: total superannuation balance