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Transfer balance cap

Transfer balance account

Section: 19.6

The transfer balance account tracks the net amounts transferred to retirement phase income streams. The client's transfer balance account is then measured against the client's personal transfer balance cap, to determine whether the client has exceeded their personal cap or is able to commence further retirement phase income streams.

The transfer balance account works like a general ledger, with amounts being credited and debited depending on a client's circumstances. Broadly, amounts are credited to the transfer balance account when retirement phase income streams are commenced, and amounts are debited from the transfer balance account when amounts are commuted and withdrawn or rolled over from retirement phase income streams. Importantly, the value of a credit or debit does not change over time with indexation or market movements.

Last modified: Thursday, August 24, 2017