Transfer Balance Cap Explained
A transfer balance account is how the ATO track super transactions and amounts during a person’s retirement phase. The amount in your clients transfer balance account will determine whether or not they have exceeded their transfer balance cap. The limit on the amount someone can hold in retirement phase is currently (in 2017-2018) is $1.6 million.
It’s important to note that clients will begin to have a transfer balance account from the 1st of July 2017 if they are already receiving a retirement phase income stream at the end of June 2017. Otherwise, it will be on the day they first commence receiving a retirement phase income stream.