The government recently introduced a $1.6 million superannuation transfer cap. For those of you fortunate to have a member balance of $1.6M or more in your superannuation fund account, you will no doubt be familiar with the changes introduced:
- If you had a pension account balance of more than $1.6M on 30 June 2017, you are required to transfer the balance over this cap amount back into accumulation
- Any balance transferred into accumulation may remain in the fund but is subject to 15% income tax.
- If pension commenced at $1.6M or less but growth in assets subsequently results in the $1.6M cap being exceeded, the excess simply remains in the pension account.
- If total superannuation balances across all funds, whether in accumulation and/or pension, exceed $1.6M you are not entitled to make any non-concessional contributions or receive any government co-contributions.
Contact us today if you need help with the $1.6 million superannuation cap or your superannuation generally, especially if you have your own SMSF.