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ARTICLE · 06 MARCH 2021

Superannuation transfer balance cap indexation – Let the fun begin!

Cooper Grace Ward
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Transfer balance cap rules impact many things, including an individual's ability to make non concessional contributions.

AustraliaFinance and Banking
Steven Jell
Steven Jell
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The ATO has confirmed that, from 1 July 2021, the general transfer balance cap (currently $1.6 million) will be indexed to $1.7 million.

Following indexation, no single transfer balance cap will apply and transfer balance caps will be between $1.6 million and $1.7 million, depending on each person's circumstances.

Never drawn a pension since 1 July 2017

Where a person starts a retirement phase income stream (pension) for the first time on or after 1 July 2021, then they will have a transfer balance cap of $1.7 million, receiving the full indexation of the general transfer cap.

Have drawn a pension since 1 July 2017

However, if a person was receiving a pension at any time between 1 July 2017 and 30 June 2021 and had a transfer balance account between those dates, then their personal transfer balance cap will:

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Cooper Grace Ward is a leading Australian law firm based in Brisbane.

This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.

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