Document ID: chunk:federal_register_of_legislation:C2017C00177:clause:1_15:p1
Version: federal_register_of_legislation:C2017C00177
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 1/5)
Character Range: 53990–56972

15  At the end of Part 3‑20 in Schedule 1
Add:

Division 136—Transfer balance cap

Table of Subdivisions
 Guide to Division 136
136‑A Excess transfer balance determinations
136‑B Commutation authorities

Guide to Division 136

136‑1  What this Division is about
      If you have excess transfer balance in your transfer balance account, the Commissioner may require you and your superannuation income stream provider to reduce the total amount of your superannuation income streams that are in the retirement phase.

Subdivision 136‑A—Excess transfer balance determinations

Guide to Subdivision 136‑A

136‑5  What this Subdivision is about

      If your transfer balance account exceeds the transfer balance cap, the excess must be reduced by commuting in full or in part your superannuation income streams that are in the retirement phase.
      If you have more than one superannuation income stream, you may choose which one to commute.

Table of sections

Operative provisions
136‑10 Excess transfer balance determination
136‑15 Review
136‑20 Electing to commute a different superannuation income stream
136‑25 Notifying Commissioner of transfer balance debits

Operative provisions

136‑10  Excess transfer balance determination
 (1) If you have *excess transfer balance in your *transfer balance account at the end of a day, the Commissioner may make a written determination stating the amount of that excess transfer balance.
Note: It is not necessary for the Commissioner to issue a determination under this subsection if the Commissioner becomes aware that you no longer have an excess transfer balance. You are still liable to pay excess transfer balance tax if no determination is issued: see Subdivision 294‑F of the Income Tax Assessment Act 1997.
 (2) A determination under this section is an excess transfer balance determination.
 (3) The amount of *excess transfer balance stated in an *excess transfer balance determination is a crystallised reduction amount.
 (4) The Commissioner may amend or revoke an *excess transfer balance determination at any time before a commutation authority relating to the determination is issued under section 136‑55.
 (5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Determination to include default commutation notice
 (6) A determination made under subsection (1) must include a notice:
 (a) stating that, if you do not make an election under section 136‑20 within the period specified in that section, the Commissioner will issue one or more commutation authorities; and
 (b) specifying:
 (i) the *superannuation income stream provider or providers to whom a commutation authority will be issued; and
 (ii) the *superannuation income stream or streams that the providers will be obliged to commute in full or in part; and
 (iii) if more than one commutation authority will be issued—the amount to be stated in each commutation authority,