Personal transfer balance caps displayed from 11 July 2023
On 1 July 2023, the general transfer balance cap will be indexed. Individuals will have a personal transfer balance cap between $1.6 and $1.9 million based on the highest ever balance of their transfer balance account between 1 July 2017 and 30 June 2023.
When will the ATO display the indexed amount?
While indexation will occur on 1 July 2023, the ATO won’t be displaying member’s personal transfer balance caps until 11 July 2023.
From 11 July:
- members will be able to view their personal transfer balance cap in ATO online services
- agents will be able to view their client’s details in Online services for agents.
To ensure member’s personal transfer balance cap calculations are based on correct and up to date information, the ATO encourages funds to report any events that occurred prior to 1 July 2023 by 30 June 2023.
Reporting between 1 and 11 July 2023
You can continue to report transfer balance cap information to the ATO between 1 and 11 July 2023 however, they will not be processing reporting during this period.
This means the ATO won’t be able to issue or revoke:
- excess transfer balance determinations they have sent to a member
- commutation authorities they have sent to a fund.
Please continue to respond as normal to commutation authorities during this period.
For more information see Indexation of the general transfer balance cap.
Article credited to the Australian Taxation Office, ato.gov.au. You can view the above on their website by clicking on this link.