In this guide
- Transfer balance cap to rise 1 July 2021
- Super associations urge government to make super fair for all
- Nearly one million young Australians left with little or no super
- SMSF Association calls for less complexity in super
- ATO has its eye on auditor details in SMSF annual returns
- High Court says Westpac subsidiaries gave unauthorised personal advice
- Optimum Pensions to launch new market-linked lifetime annuity
- Maritime Super to outsource investment to Hostplus
Transfer balance cap to rise 1 July 2021
The Australian Taxation Office has announced that the Transfer Balance Cap will rise for the first time since it was introduced – from $1.6 million to $1.7 million on 1 July 2021 – as a result of an increase in the consumer price index.
The indexation means that individuals will now have a personal transfer balance cap of between $1.6 million and $1.7 million and no single TBC will apply to everybody. An individual can access their TBC via ATO online services through myGov.
“We will calculate each individual’s personal TBC based on the information reported to and processed by us. If you report pre 1 July 2021 events after 1 July 2021, we will go back and recalculate the member’s personal TBC and apply that new cap to their affairs,” the ATO says.
The changes will make the application of the TBC more complex and will also impact a number of other caps and limits relating to superannuation. It is also expected that the total super balance limit will increase from $1.6 million to $1.7 million from 1 July 2021.
The ATO will hold a webinar to explain the changes on March 2, 2021.
Super associations urge government to make super fair for all
The Association of Superannuation Funds of Australia (ASFA) has called for a more equitable superannuation system in its pre-budget submission for the 2021-22 Federal Budget.
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