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Total superannuation balance

Difference between total superannuation balance and transfer balance cap

Section: 18.2

Broadly, the transfer balance cap operates by measuring the value of a client's transfer balance account on a daily basis. The transfer balance account broadly measures the commencing value of retirement phase income streams. The transfer balance cap is aimed at limiting the amount a client can transfer to the pension phase where earnings are tax-free. The transfer balance account will generally change with the commencement or commutation of retirement phase income streams.

The total superannuation balance differs from the transfer balance cap, as it measures the 30 June value of a client's superannuation interest in the accumulation phase, the retirement phase and any in-transit rollovers.

As a result, a client's total superannuation balance will generally change each year due to the effect of investment returns, contributions, and lump sum payments.

Last modified: Wednesday, August 23, 2017