Deadline looms for excess TBC amounts under $100K
An industry lawyer has reminded SMSF practitioners and trustees that amounts which exceeded the transfer balance cap on 1 July by $100,000 or less will need to be rectified by 31 December 2017.
In the lead-up to 30 June 2017 this year, the ATO provided super funds with transitional relief so that if the fund was above the $1.6 million transfer balance cap by only $100,000 or less, and removed this excess by the end of the year, they would not have to pay excess transfer balance tax.
With 31 December just around the corner, DBA Lawyers director Daniel Butler said SMSF practitioners should ensure their clients have removed these excess amounts out of the pension account.
This transitional relief, he explained only applies to a pension that was in place as of 30 June this year.
“So you cannot get that $100,000 leeway in general, it had to be a pension that was in place as of 30 June this year,” he said.
“It's just worthwhile noting that, because some of your clients may need to rely on that.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.