A BDBN is one which is subject to special conditions which can make it useful to deal with various modern estate planning issues.
transfer balance cap
Downsizing the home to get more super
As part of the May 2017 budget changes, people over 65 will be able to make an additional contribution to super provided they sell their house to do it.
12-month grace period now proposed for reversionary pensions
One change the Government has made in the “Fair and Sustainable” Bill (compared to the Exposure Draft) is that reversionary pensions will now be “counted” for the purposes of the $1.6m pension transfer cap 12 months after the pension transfers. Previously, (in the Exposure Draft) the transferred pension was counted six months after it transferred. […]
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 […]
What is the taxpayer’s personal transfer cap?
The personal transfer cap of a taxpayer is the transfer cap which applies to the financial year in which the taxpayer first commences a pension to which the earnings tax exemption applies. If Mark commenced an account-based pension on 30 September 2022, his personal transfer cap would be the general transfer cap which applied for […]