Document ID: chunk:federal_register_of_legislation:C2017C00177:clause:1_3:p2
Version: federal_register_of_legislation:C2017C00177
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/3)
Character Range: 17253–20010

transfer balance cap for a later *financial year is equal to your transfer balance cap for the previous year, subject to section 294‑40 (which is about proportional indexation).
 (3) The general transfer balance cap is:
 (a) for the 2017‑2018 *financial year—$1,600,000; or
 (b) for the 2018‑2019 financial year or a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (a).
Note: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960‑285.

294‑40  Proportionally indexed transfer balance cap
 (1) This section applies to increase your transfer balance cap for a *financial year (other than the financial year in which you first start to have a *transfer balance account) if:
 (a) the *general transfer balance cap is increased as a result of indexation for the financial year; and
 (b) at no time before the start of that financial year has the *transfer balance in your transfer balance account at the end of a day exceeded your transfer balance cap.
 (2) Your transfer balance cap is increased for the *financial year by the amount worked out using the following formula:
where:
indexation increase means the amount by which the *general transfer balance cap for the *financial year increased as a result of indexation.
unused cap percentage is worked out by:
 (a) identifying the highest *transfer balance in your *transfer balance account at the end of any day up to the end of the previous *financial year; and
 (b) identifying the day on which the transfer balance account had that transfer balance at the end of the day, or, if your transfer balance account had that transfer balance at the end of more than one day, the earliest of those days; and
 (c) expressing the transfer balance identified in paragraph (a) as a percentage (rounded down to the nearest whole number) of your *transfer balance cap on the day identified in paragraph (b); and
 (d) subtracting the result of paragraph (c) from 100%.
 (3) However, if the highest *transfer balance mentioned in paragraph (a) of the definition of unused cap percentage in subsection (2) is less than nil, that unused cap percentage is taken to be 100%.

294‑45  Transfer balance account ends
  The *transfer balance account ceases when the *retirement phase recipient dies.

294‑50  Assume pension rules and commutation authorities complied with
 (1) For the purposes of working out a matter mentioned in subsection (2) at a time:
 (a) assume that an income stream will properly comply with any rules or standards under which it is, or is purported to be, provided; and
 (b) disregard subsection 307‑80(4).
 (2) The matters are:
 (a) whether you are the *retirement