The transfer balance cap is essentially a limit on how much superannuation a member can transfer from the accumulation phase over into the tax free pension phase. Whilst the transfer balance cap will be indexed to CPI, it will only go up in $100,000 steps.
On 1 July 2021, the general transfer balance cap has in fact been indexed, and will go up from $1.6 to $1.7 million.
Now unfortunately (as with many things super related) there is some complexity around this, as this new cap will NOT apply to everyone.
In a nutshell, a SMSF member will find themselves in either one of two camps:
The ATO state that from July 2021, personal transfer balance caps will be able to be viewed at ATO online, and that it will be the only place that a personal transfer balance cap will be able to viewed if you had a transfer balance account prior to 1 July 2021.
As per usual with this sort of thing, seek professional advice prior to implementing any strategies involving complexity and cap levels.
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