TBC 1: Transfer Balance Cap Unwrapped


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Since the introduction of the transfer balance cap (TBC) on 1 July 2017, the TBC rules limit how much money an individual can transfer from their accumulation account into the tax-free retirement phase to commence an income stream.

While the increase to the TBC on 1 July 2021 to $1.7 million won’t be an issue for individuals starting an income stream after this date, the change to the TBC can make things more complex for many individuals already drawing an income stream. This is because rather than having a single TBC that applies to everyone, many retirees will end up having their own personal TBC limit that will range somewhere between $1.6 million and $1.7 million.

In this session, we’ll go back to basics and explain the TBC rules in detail, including how the TBC rules work, how indexation of the TBC can impact clients already in retirement phase, tips and traps to be aware of and how to ensure clients do not exceed their personal TBC limit.

Recorded on Thursday, 4 November 2021.

Presented by Natasha Panagis
1 CPD Hour