From 01 July 2017, the Government introduced a lifetime limit on the total amount of superannuation benefits that you can transfer into a tax-free Retirement Phase Pension Income Stream. This limit is known as the Transfer Balance Cap (TBC).
The following table sets out the General Transfer Balance Cap (TBC) since its introduction on 1 July 2017:
||General Transfer Balance Cap (TBC)
|From 1 July 2017 to 30 June 2021
|From 1 July 2021 to 30 June 2023
|From 1 July 2023
For more information on the Transfer Balance Cap, please click here.
Due to the Transfer Balance Cap measure, the ATO has imposed a new reporting obligation on SMSF Trustees so as to record and track the movements in the member’s Transfer Balance Account and apply provisions should the member breach the Transfer Balance Cap (TBC). This new event-based reporting framework is called the Transfer Balance Account Report (TBAR). It is a separate form from the SMSF Annual Return.