Document ID: chunk:federal_register_of_legislation:C2017C00177:clause:1_4:p1
Version: federal_register_of_legislation:C2017C00177
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/2)
Character Range: 8947–11926

4  After Division 293
Insert:

Division 294—Transfer balance cap

Table of Subdivisions
 Guide to Division 294
294‑A Object of this Division
294‑B Transfer balance account
294‑C Transfer balance debits
294‑D Modifications for certain defined benefit income streams
294‑E Modifications for death benefits dependants who are children
294‑F Excess transfer balance tax

Guide to Division 294

294‑1  What this Division is about

      There is a cap on the total amount you can transfer into the retirement phase of superannuation (where earnings are exempt from taxation).
      Credits are added to a transfer balance account when you transfer amounts.
      If the balance in your account exceeds the cap, you will be required to remove the excess from the retirement phase, and you will be liable to pay excess transfer balance tax.
Note: Division 136 in Schedule 1 to the Taxation Administration Act 1953 contains rules about excess transfer balance determinations and commutation authorities.

Subdivision 294‑A—Object of this Division

Table of sections

Operative provisions
294‑5 Object of this Division

Operative provisions

294‑5  Object of this Division
  The object of this Division is to limit the total amount of an individual's *superannuation income streams that receive an earnings tax exemption.

Subdivision 294‑B—Transfer balance account

Guide to Subdivision 294‑B

294‑10  What this Subdivision is about

      This Subdivision creates a transfer balance account for you, and credits it, if you have a superannuation income stream in the retirement phase.
      It also provides for a transfer balance cap and identifies when you have excess transfer balance.

Table of sections

Operative provisions
294‑15 When you have a transfer balance account
294‑20 Meaning of retirement phase recipient
294‑25 Transfer balance credits
294‑30 Excess transfer balance
294‑35 Your transfer balance cap
294‑40 Proportionally indexed transfer balance cap
294‑45 Transfer balance account ends
294‑50 Assume pension rules and commutation authorities complied with

Operative provisions

294‑15  When you have a transfer balance account
 (1) You have a transfer balance account if you are, or have at any time been, the *retirement phase recipient of a *superannuation income stream.
 (2) You start to have the *transfer balance account on the later of:
 (a) 1 July 2017; and
 (b) the day you first start to be a *retirement phase recipient of a *superannuation income stream.

294‑20  Meaning of retirement phase recipient
 (1) You are the retirement phase recipient of a *superannuation income stream at a time if:
 (a) the superannuation income stream is in the *retirement phase at that time; and
 (b) a *superannuation income stream benefit from the superannuation income stream is payable to you at that time.
 (2) You are also the retirement phase recipient of a *superannuation income stream at a time if:
 (a) the superannuation income stream is in the *retirement