The general transfer balance cap (TBC) is the cap that determines how much an individual can transfer into retirement phase and will increase from the current $1.7m to $1.8/1.9m on 1 July 2023. This is the second time that the general TBC has been lifted.
Australia's superannuation system has recently been the subject of much debate. While much of the discussion has centred on proposed changes, one significant change will be implemented on 1 July 2023 - the general Transfer Balance Cap (TBC) will increase from $1.7 million to $1.9 million through indexation. What is the Transfer Balance Cap?
The transfer balance cap is staying at $1.9m for the 2023/24 and 2024/25 financial years. If a member has not fully utilised their transfer balance cap they are eligible to transfer more funds from the accumulation phase to the tax-free pension phase.
The relevant Total Superannuation Balance threshold applied is based on the General Transfer Balance Cap. As such, these thresholds will also increase from 1 July 2023.
The General Transfer Balance Cap (TBC) is set to increase from $1.7 Million to $1.9 Million, from 1 July 2023 – with flow-on impacts to the ability to make Non-Concessional contributions (NCCs).
On 1 July 2023, the Transfer Balance Cap is set to increase from $1.7m to $1.9m. These changes may affect the superannuation strategy you currently have in place.
Why is the transfer balance cap changing? The reason the general transfer balance cap is increasing by $200,000 to $1.9 million in the 2023-24 financial year is because changes to the cap are dependent on the cost of living, as measured by the Consumer Price Index, which recently went up. Who does the new $1.9 million transfer balance cap apply to?
Discover how the superannuation transfer balance cap is changing from July 2023. Ensure you're prepared with expert advice from APT Wealth. Learn more.
This cap, which is currently $1.7m, will be increased to $1.9m with effect on 1 July 2023. The increase of $200,000 in the gap is due to indexation.
From 1 July 2023 individuals will have a Transfer Balance Cap between $1.6 million and $1.9 million.
The Transfer Balance Cap (TBC) limits how much super can be transferred into a retirement-phase pension account, where investment earnings are tax-free. Current Transfer Balance Cap As of 1 July 2023, the general TBC is $1.9 million. Members with balances exceeding this amount must keep the excess in the accumulation phase, where earnings are taxed at 15%. Note: The cap is indexed periodically ...
Navigating the transfer balance cap Stephen he transfer balance cap imposes a limit on the amount of capital that can be held in retirement phase in order to support a retirement phase su-perannuation income stream—also commonly referred to as a superannuation pension. The general transfer balance cap is $1.9 million for the 2023/24 income year.
The ATO reminds taxpayers that, from 1 July 2023, the general transfer balance cap will be indexed. Individuals will have a personal transfer balance cap between $1.6 and $1.9 million, based on the highest ever balance of their transfer balance account between 1 July 2017 and 30 June 2023.
Defining the Transfer Balance Cap A Transfer Balance Cap is the ‘lifetime limit on the total amount of capital that individuals can transfer into the retirement phase to support super income streams.’ This cap was introduced on 1 July 2017 at $1.6 million, and due to CPI indexation, rose to $1.7 million on 1 July 2021. Why is it changing again?
The untaxed plan cap amount for 2023–24 is $1,705,000, meaning Tom's rollover amount exceeds the cap by $185,000. The originating fund must withhold tax of $86,950.
