Transfer balance cap
Transfer balance account debits
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
- 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