Monitoring your $1.6 million transfer balance cap

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Monitoring your $1.6 million transfer balance cap

Effective 1 July 2017, you are subject to a $1.6 million transfer balance cap which limits the amount of assets that can fund your pension.

Amounts in excess of the lifetime cap will not attract the tax exemption for earnings from assets in retirement phase and will be required to be held in the accumulation phase and income derived from these assets taxed at 15%.

This Insight Paper details the credits and debits for the cap, the results of exceeding the cap and the effects of the new reporting requirements. The paper contains two detailed transfer balance cap case studies to illustrate the technical nature of the document.

This is an advanced technical SMSF document and is aimed at individuals who have a comprehensive understanding of transfer balance caps. We highly recommend that you gain the advice of an SMSF Specialist in order to assist you in monitoring your transfer balance cap. To find your nearest SMSF Specialist, use our Find a Specialist function.

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