Indexation of the general transfer balance cap (TBC) will start on 1 July 2021

Indexation of the general transfer balance cap (TBC) will start on 1 July 2021 as the consumer price index figure for the December 2020 quarter was higher.

After indexation, no single TBC will apply to pensioners. Instead, pensioners will have a personal TBC somewhere between $1.6 and $1.7 million. 

Before 1 July 2021, your personal transfer balance cap will be:

• - $1.6 million if, at any time between 1 July 2017 and 30 June 2021, the balance of that account was $1.6 million or more
• - between $1.6 and $1.7 million in all other cases, based on the highest ever balance of your transfer balance account.

If a pensioner already has a TBC, the only place they can view their personal TBC is in ATO online services through myGov or they can calculate it themselves if they know what has been reported to the ATO in all previous years.

Indexation of the general transfer balance cap changes other caps and limits that may apply to you, if you make:

• - non-concessional contributions to your super
• - a non-concessional contribution to your super and are eligible for a co-contribution
• - a non-concessional contribution to super on behalf of your spouse and want to claim a tax offset 
• - concessional contribution to $27,500 
•  

To help you understand the changes and what you need to do to support your clients, register for our webinar on 4th March 2021 below - Repercussions of indexation to Transfer Balance Cap to $1.7M & Contributions Caps. 

Last chance to book Free Webinar 

Repercussions of indexation to Transfer Balance Cap to $1.7M & Contributions Caps 

By Manoj Abichandani

Topics: 

- Transfer balance cap indexation
- Dealing with death benefits with increased Transfer Balance Cap
- How the increased "Total Superannuation Balance" will interact with NCC bring forward rule 

When: 4-March-2021

Time: 02:00 PM to 03:00 PM

How to Book: https://www.onlinesmsfaudit.com.au/BookWebinar.aspx    

Cost: Free