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Transfer balance cap

Transfer balance account debits

Section: 19.8

Generally, a debit arises in a client's transfer balance account when the client commutes a retirement phase income stream.

The following amounts are debits:

  • Commutations from a retirement phase income stream
    • this includes amounts commuted and cashed out of superannuation or commuted and rolled over.
  • structured settlement contributions
    • the transfer balance account debit occurs at the later of when the contribution is made or when a transfer balance account is created for a client.
  • replenishment debits approved by the ATO. Replenishment debits apply in limited circumstances where the value of a client's retirement phase income stream has been impacted by:
    • fraud or dishonesty
    • bankruptcy
    • family law payment splits
  • value of an income stream where the trustee has not complied with a commutation authority and as a result the income stream is no longer in retirement phase
  • value of an income stream where it failed to meet the pension or annuity standards in a year, and is therefore no longer in the retirement phase
  • amount of an excess transfer balance that cannot be commuted due to the non-commutable nature of the income stream.

Last modified: Friday, January 12, 2018