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Transfer balance cap

Transfer balance account debits

Section: 19.8

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

The following amounts are debits:

  • lump sums commuted from a retirement phase income stream.
  • includes amounts commuted and cashed out of superannuation or commuted and rolled over
  • structured settlement contributions
  • the transfer balance account debit is generally the amount of the original contribution and is debited at the later of when the contribution is made or when a transfer balance account is created for a member
  • transitional rules apply where the structured settlement contribution was made prior to 1 July 2017 and the member had a retirement phase interest on 1 July 2017
  • replenishment debits approved by the ATO. Replenishment debits apply in limited circumstances where the value of a member's retirement phase income stream has been impacted by:
    • fraud or dishonesty
    • bankruptcy
    • family law payment splits from a retirement phase income stream
  • 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 an income stream (and as a result is 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
  • any other amount prescribed in regulations.

Last modified: Thursday, July 25, 2019