Transfer balance cap
Excess transfer balance determination
Where a member has an excess transfer balance, the ATO will issue an excess transfer balance determination to the member.
The determination will specify the amount (known as the 'crystallised reduction amount') that must be commuted and removed from commutable retirement phase income streams.
The crystallised reduction amount is generally the amount of the excess plus the amount of notional earnings credited to the member's transfer balance account.
The determination will also include a default commutation notice. The ATO will issue a compulsory commutation authority to the superannuation fund listed in the default commutation notice (generally the superannuation income stream provider that caused the excess transfer balance) to commute the crystallised reduction amount, unless the member makes a voluntary commutation within 60 days of the determination or makes a valid election to nominate another superannuation income stream for the compulsory commutation.
Last modified: Thursday, July 25, 2019