Starting 1 July 2021, the transfer balance cap (“TBC”) will be indexed from $1.6 million to $1.7 million (“Indexed TBC”). Although this change sounds like good news, it does come with quirks not everyone is aware of and not knowing them can lead to adverse outcomes.
pensions
Federal Budget and seniors: PLS changes are welcomed
Major enhancements that Pension Boost has been advocating for will be made to the Pension Loans Scheme (PLS) from 1 July 2022.
Lump sum payment from PLS could assist more retirees to live at home
A simple change to the Pension Loans Scheme (PLS) would allow more retirees to adjust their homes better enabling them to live in their homes for longer.
Discover the new age pension & PLS rates
Pension Boost has noted that the latest Age Pension rates adjusted for inflation were released recently. While the increase is modest (0.9%), reflecting the low inflation environment, it is positive news for seniors given there was no increase last September.
600 sign Pension Boost’s No Negative Equity Guarantee petition
Pension Boost has a petition running to bring the government’s reverse mortgage solution known as the Pension Loans Scheme (PLS) into line with regulations that have applied to commercial reverse mortgage providers since 2012.
Two things to know about recent changes to superannuation rules
The $1.6 million cap applies to combined super accounts regardless of whether they are defined benefit (taxed or untaxed) or account based pensions. Special rules apply to the calculations and taxation of defined benefits. Based on a $50,000 annual defined benefit pension payment, the defined benefit may be valued at $800,000, meaning that the remaining […]
Pension transfer balance cap – FAQs
What does the pension transfer balance cap mean for new and current account based pensions and transition to retirement pensions? What happens to new pensions? If a pension commences on or after 1 July 2017, the super fund paying the pension will notify the ATO that the pension has commenced and the initial balance of […]
What is the pension transfer balance cap and how does it operate?
In late September, the government released the second tranche of proposed superannuation changes, which covers the pension transfer balance cap, concessional contribution changes, catch up concessional contributions and the removal of the earnings tax exemption for transition to retirement pensions. This article will focus on issues surrounding the pension transfer cap. What is the pension […]