SMSF strategy considerations ahead of double TBC indexation
Anthony Cullen from SuperConcepts outlines what SMSF professionals should be thinking about in the lead up to the general transfer balance cap (TBC) increasing on 1 July.
Senior SMSF technical specialist Anthony Cullen explains the impact of the $200,000 increase in the general TBC and how it may apply to clients at an individual level.
For SMSF clients deciding whether to delay starting their pension until July, Mr Cullen highlights factors to weigh up, including loss of exempt current pension income this financial year, the potential for future tax savings and considerations regarding the tax-free and taxable components.
He also explains how the increase works in relation to death benefits and how the ability to access indexation will be different for a reversionary pension compared with a newly commenced death benefit pension.
Mr Cullen also discusses some of the other strategy considerations in relation to the increase, including for transition to retirement income streams.
