Whenever a debit or credit occurs.
Retirement phase pensions and annuities (RPPs) and the special value of defined benefit (DB) pensions less personal injury contributions.
Credits less debits relating to the ABP.
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 |
As at 30 June (of the previous financial year) e.g. the balance as at 30 June 2024 is relevant for the 2024/25 financial year.
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.
Actual balance on 30 June.
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.
Non-concessional contribution (NCC) limits (2024/25) apply if:
TSB | Maximum NCC | Bring forward period5 |
---|---|---|
$1,900,000 or over |
Nil | n/a |
$1,780,000- $1,899,999 |
$120,000 | n/a |
$1,660,000- $1,779,999 |
$240,000 | 2 years |
<$1,660,000 | $360,000 | 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 entered into on or after 1 July 2017
5 Persons aged 75 years or older on 1 July cannot trigger the bring-forward rule. If person has attained age 75, the contribution must be received by the super fund within 28 days from the end of the month in which they attain age 75.
Super and SMSF solutions for your clients
Meet your clients' retirement needs with our super and SMSF solutions that can be integrated with your business model.
Email BT Technical services
Login to the BT Panorama mobile app to call.
FOR ADVISERS USE ONLY
This information has been prepared by BT, a part of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (Westpac), for financial advisers only and must not be made available to any client or any other person, or attributed to Westpac or any other company in the Westpac group.
The information is an overview only and it should not be considered a comprehensive statement on any matter nor relied upon as such. Any graph, case study or example is for illustrative purposes only and is not an indication of future performance or result. Where past performance is used, please note that past performance is not a reliable indicator of future performance. Any taxation information is a general statement based on current laws and their interpretation. The article is current as of the date of the article unless stated otherwise. The article does not contain, and should not to be taken to contain, any financial product advice and it does not take into account any person’s financial situation, needs, objectives or taxation situation. Because of this, you should, before acting on the information, consider its appropriateness to your clients, having regard to their financial situation, needs and objectives, and your clients should seek independent professional taxation advice on any taxation matters. It is not the intention of Westpac or any member of the Westpac group that the information be used as the primary source of readers’ information but as an adjunct to their own resources and training and should therefore not be relied on for the purposes of making any financial recommendations or an investment decision. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this website is complete, accurate or up to date or fit for any purpose; and (b) no member of the Westpac group is in any way liable to you (including for negligence) in respect of any reliance upon such information.
This page may also contain links to websites operated by third parties (‘Third Parties’) who are not related to the Westpac Group (‘Third Party Web Sites’). These links are provided for convenience only and do not represent any endorsement or approval by the Westpac Group of those Third Parties or the information, products or services displayed or offered on the Third Party Web Sites.