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 2023 is relevant for the 2023/24 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.
Non-concessional contribution (NCC) limits (2023/24) apply if:
| TSB | Maximum NCC | Bring forward period5 |
|---|---|---|
| $1,900,000 or over |
Nil | n/a |
| $1,790,000- $1,899,999 |
$110,000 | n/a |
| $1,680,000- $1,789,999 |
$220,000 | 2 years |
| <$1,680,000 | $330,000 | 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.
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Bring-forward provisions for super
Concessional contribution rules
Removal of 10% test to make personal deductible contributions
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