No doubt you have already heard about the introduction of a $1.6 million transfer balance cap from 1 July.
When most people see that figure, they think of the asset balance in their account based pensions.
But did you know that this ‘transfer balance cap’ also includes a notional value for every income stream you receive via the superannuation system?
This includes:
- lifetime pensions, including the majority of defined benefit pensions commenced at any time (eg. Commonwealth or State Government defined benefit pensions)
- Complying lifetime annuities
- Complying life expectancy annuities and pensions
- Term allocated annuities and pensions (ie Market linked pensions).
It is important to remember that if you have a defined benefit pension you may need specialist advice to ensure that your account based pension/s are reduced by enough to bring you under the cap.
Therefore, please contact us immediately if you have one of these income streams, and/or have one or more account based pensions totalling $1.6m or more in value, and would like us to review your situation.
About The Author: The Quill Team
Quill Group is your specialist adviser for accounting, taxation, insurance, financial advice, investment, estate planning and superannuation.
We have offices on the Gold Coast (Southport) as well as Brisbane (Eight Mile Plains), Sunshine Coast (Maroochydore), Adelaide (Wayville) and a visiting office in Alice Springs.
We aim to 'shape the future' of all the clients we work with.
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