A taxpayer is being obliged to pay an amount of excess transfer balance (ETB) tax, even though he took active steps to reduce his pension account balance to be under the cap by following the directions he believed to be instructional on the ATO website. In a case that has just been decided by the
A transfer balance account report (TBAR) has been developed by the ATO to capture the new information super providers need to provide. The new TBAR and relevant instructions are now available from the ATO website. It adds that it is planned to have an online TBAR form available from next January, although you can download
Writing for Tax & Super Australia’s superannuation journal The Contributor, Gabriela Rusu from GR Super, an independent self-managed superannuation fund (SMSF) service provider, says that the imposition of the $1.6 million transfer balance cap on retirement phase income streams is one of the most significant changes to super that will apply from 1 July 2017.
The transfer balance cap applies to the total amount of superannuation that has been transferred into retirement phase. The balance of assets in pension phase can be held across several accounts, so the number of accounts is immaterial. The amount of the lifetime cap will start at $1.6 million, and will be indexed periodically in $100,000