Comparison: Transfer balance cap versus total super balance

Technical resource

This table shows the differences between the transfer balance cap and total super balance including when they are relevant as well as how they are measured.

Transfer balance cap (TBC)

When assessed

Whenever a debit or credit occurs.



In­cludes

Retirement phase pensions and annuities (RPPs) and the special value of defined benefit (DB) pensions less personal injury contributions.

 


Value of account-based pension (ABP) income streams

Credits less debits relating to the ABP.

Rel­e­vance

Limits the amount of super which can be transferred to RPPs. Earnings accrued within pension phase do not impact TBC.

Debits Credits
Lump sum withdrawals RPP balance at 30/6/17
Rollover from RPP to accumulation RPP commenced from 1/7/172
Reduction to RPP because of fraud, dishonesty, bankruptcy, family law split TRIS3 becomes RPP
ABP fails to comply with release authority or pension and annuity standards Excess transfer balance earnings
Personal injury contribution LRBA asset4 held in pension phase and loan repayments made from accumulation monies

Total super balance (TSB)

When assessed

As at 30 June (of the previous financial year) e.g. the balance as at 30 June 2020 is relevant for the 2020/21 financial year.

In­cludes

Accumulation and retirement interests, rollover benefits, excess transfer balance earnings, any share of the outstanding balance of an LRBA entered into after 1 July 2018 once a full condition of release has been met or if the lender is an associate1 less personal injury contributions.

Value of account-based pension (ABP) income streams

Actual balance on 30 June.

Rel­e­vance

Impacts ability to make NCCs and carry forward unused concessional contributions (CCs), spouse and government co-contributions, SAF/SMSF method for calculating exempt current pension income (ECPI), and the ability to use the work test exemption.

TSB Maximum NCC Bring
for­ward
pe­riod5
$1,600,000
or over
Nil n/​a
$1,500,000-
$1,599,999
$100,000 n/​a
$1,400,000-
$1,499,999
$200,000 2 years
<$1,400,000 $300,000 3 years

1 Associates are those that benefit under the SMSF e.g. members, and their associates such as relatives, tax law partners and controlled companies etc.
2 The balance of a reversionary pension at death is a credit at the later of 12 months after the date of death or 1/7/17.
3 A credit for the amount of a TRIS' balance arises when the member attains age 65 or informs the super fund trustee that a permanent disability, terminal illness or retirement condition of release has been met prior to age 65.
4 Where the borrowing was enetered into on or after 1 July 2017
5 Persons aged 65 years or older on 1 July cannot trigger the bring-forward rule.

Next: Non-concessional contribution rules

Non-concessional contributions are contributions where a tax deduction has not been claimed. There are rules that determine an individual's available cap.
Technical resource

Contact BT Technical Services for more information

How the bring-forward rules works for superannuation contributions and determining whether your clients are eligible.
Article
Concessional contributions are contributions where a tax deduction has been claimed. A general cap applies but some may be able to use carry forward amounts.
Technical resource
Originally restricted to those who were at least substantially self-employed, personal deductible contributions can now be used more widely.
Technical resource

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