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Transfer balance cap

Transfer balance account - credits

Section: 9.3

9.3 Transfer balance account - Credits

Section 294-25 of the Income Tax Assessment Act 1997, sets out when a member in retirement phase and receiving a superannuation income stream will receive a credit into their transfer balance account.

The following events will trigger a credit:

  • superannuation income streams commenced prior to 1 July 2017 and the member continues to receive the income after this date - this includes both reversionary and non-reversionary death benefit income streams
  • superannuation income streams commenced after 1 July 2017, including both reversionary and non-revisionary death benefit income streams.
  • when a transition to retirement stream starts to be in retirement phase
  • limited recourse borrowing arrangements - repayments
  • excess transfer balance earnings

Note that whilst the credits increase the transfer balance account this will eventually reduce the available personal cap space.

For further detail please refer to LCR 2016/9 Superannuation reform: transfer balance cap

This technical resource is intended for the use of financial advisers only. It is current at the date of publication but may be subject to change. This publication has been prepared without considering a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Monday, June 19, 2023