Transfer balance cap
Transfer balance account - credits
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
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Last modified: Monday, June 19, 2023