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ATO confirms updated personal transfer balance cap availability date

ATO
Tony Zhang
16 June 2021 — 1 minute read

With the general transfer balance cap set to be indexed on 1 July 2021, SMSFs will be able to view their new personal transfer balance cap online starting from July.

The ATO has announced that the updated personal transfer balance cap will be available online from 5 July 2021.

On 1 July 2021, the superannuation general transfer balance cap will be indexed, meaning individuals will have a personal transfer balance cap between $1.6 million and $1.7 million. 

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Their personal transfer balance cap is based on the highest-ever balance of their transfer balance account between 1 July 2017 and 30 June 2021.

The ATO has confirmed members will be able to view their personal transfer balance cap in ATO Online and their agents will be able to view this information in Online Services for Agents.

“Due to the timing of APRA fund reporting, we won’t be calculating and displaying members’ personal transfer balance cap until 5 July 2021. This is to minimise confusion for individuals,” the ATO said.

“After 5 July 2021, the member’s personal transfer balance cap may change if we receive information that changes the highest-ever balance of their transfer balance account before 1 July 2021. 

“This could occur if an SMSF hasn’t completed its reporting of pre-1 July 2021 transfer balance account events to us.”

The ATO encouraged SMSFs to continue reporting transfer balance cap information between 1 and 5 July 2021, even though the ATO will not be processing the funds reporting during this period. 

“This means we will not be able to issue or revoke excess transfer balance determinations we have sent to a member, or commutation authorities we have sent to funds,” the ATO noted.

Meanwhile, the ATO’s event-based reporting and valuation guidelines web content has also been updated. 

“The changes will help you understand how the timing of your reporting impacts how we calculate your member’s personal transfer balance cap from 1 July 2021,” the ATO explained.

“It will also extend the circumstances where SMSFs can use the reasonable estimate method to support their TBAR reporting and include examples and address myths and misunderstandings.”

ATO confirms updated personal transfer balance cap availability date
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