Transfer Balance Cap expected to be indexed to $1.7 million in 2021

The ATO anticipates that the general Transfer Balance Cap will be indexed in 2021, after it was not indexed for 2020. The eventual indexation of the Transfer Balance Cap to $1.7 million will make the system more complicated. Like many superannuation caps and thresholds, the Transfer Balance Cap is subject to indexation. Starting at $1.6… Continue reading Transfer Balance Cap expected to be indexed to $1.7 million in 2021

Don’t delay responding to Transfer Balance letters till after holidays: ATO

The ATO has warned taxpayers who receive Transfer Balance Cap letters from the ATO to not delay in responding, as the due dates fall over the holidays. The ATO says that Excess Transfer Balance Determination and Commutation Authorities issued in October will have due dates that fall over the Christmas-New Year period, warning taxpayers to… Continue reading Don’t delay responding to Transfer Balance letters till after holidays: ATO

90% increase in SMSF accumulation assets post Transfer Balance Cap

The Transfer Balance Cap has seen a dramatic change in the tax status of SMSF assets, Class Ltd has found. The introduction of the Transfer Balance Cap – which limits the amount that can be held in pension/retirement phase – has been followed by an almost doubling in accumulation phase assets. Almost 25% of SMSF assets… Continue reading 90% increase in SMSF accumulation assets post Transfer Balance Cap

ATO to send Excess Transfer Balance Cap determinations in January

The ATO says it will start sending out Excess Transfer Balance Determinations in January 2018 to individuals who have exceeded their Transfer Balance Cap and not rectified the excess amount. These Excess Transfer Balance (ETB) Determinations will generally be based on information provided to the tax office by ARPA-regulated super funds, though some SMSF members may… Continue reading ATO to send Excess Transfer Balance Cap determinations in January

Transfer Balance Cap transition deadline looms for SMSFs

SMSFs impacted by the Transfer Balance Cap are being urged, by the SMSF Association, to seek advice before the transitional deadline of 31 December 2017. One of the 2016 Budget measures, the Transfer Balance Cap commenced on 1 July 2017. It limits the amount that can be held in pension phase, requiring amounts over the… Continue reading Transfer Balance Cap transition deadline looms for SMSFs

SMSFs need to rethink estate planning in light of Transfer Balance Cap

Many SMSFs and their advisers are “blissfully ignorant” of the implications of the Transfer Balance Cap upon death, and need to rethink their estate planning, says the SMSF Association. SMSF Association Head of Technical Peter Hogan said that SMSF members should seek specialist advice on the potential impact of receiving a pension on the death… Continue reading SMSFs need to rethink estate planning in light of Transfer Balance Cap

Changes to SMSF LRBAs top BT Advice list of queries

Changes to SMSF Limited Recourse Borrowing Arrangements (LRBAs) has topped the list of adviser queries for the June quarter, according to BT. Changes were made to include LRBAs in the calculation of the Transfer Balance Cap, with further legislation expected later in 2017 to include LRBAs in the calculation of the Total Superannuation Balance. BT… Continue reading Changes to SMSF LRBAs top BT Advice list of queries

ATO issues Transfer Balance Cap & super death benefits guidance: LCG 2017/3

The ATO has issued finalised guidance on how the Transfer Balance Cap works with superannuation death benefits. The ATO has issued LCG 2017/3 – Superannuation reform: Superannuation death benefits and the transfer balance cap, a draft of which was issued as LCG 2017/D3. LCG 2017/3 (a Law Companion Guideline, which is a type of ATO public ruling)… Continue reading ATO issues Transfer Balance Cap & super death benefits guidance: LCG 2017/3

Transfer Balance Cap commutation amount can be worked out later: PCG 2017/5

Commutations so that members are under the $1.6 million Transfer Balance Cap can be for an amount to be worked out later, according to the ATO. The ATO says it will not apply compliance resources to the review of certain commutations made before 1 July 2017 that aim for a member to be under the… Continue reading Transfer Balance Cap commutation amount can be worked out later: PCG 2017/5

ATO finalises Transfer Balance Cap & TRIS transitional CGT guidelines

The ATO has finalised, previously draft, guidance on how the transitional CGT relief for superannuation funds works for the Transfer Balance Cap and Transition to Retirement Income Streams. LCG 2016/8 Superannuation reform: transfer balance cap and transition-to-retirement reforms: transitional CGT relief for superannuation funds, previously LCG 2016/D8, has been finalised. Update: The ATO has also finalised LCG… Continue reading ATO finalises Transfer Balance Cap & TRIS transitional CGT guidelines