Transfer balance cap
Transfer balance account debits
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
- 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