Super transfer balance cap — Law Companion Guideline LCG 2016/9 released

On 10 March 2017, the ATO released the final version of Law Companion Guideline LCG 2016/9 dealing with the new superannuation transfer balance cap. It was released in draft form in November 2016 as Draft LCG 2016/D9.


The Guideline provides guidance on how the transfer balance cap (set at $1.6 million for the 2017-18 financial year) operates for account-based superannuation income stream products. It provides specific guidance on the following new concepts:

  • the general transfer balance cap, transfer balance account, transfer balance and personal transfer balance cap (transfer balance cap);
  • the consequences of a transfer balance exceeding a person's transfer balance cap, resulting in an "excess transfer balance" including:
    • the excess transfer balance tax and how this is calculated;
    • when the Commissioner will issue an excess transfer balance determination; and
    • the effect of transfers and/or commutations on the transfer balance.

The Guideline notes that transition to retirement income streams (TRIS) are not included in a transfer balance account as they are not in the retirement phase. From 1 July 2017, superannuation income stream providers will be taxed on earnings made from assets supporting a TRIS. Also, the age pension (or other types of government assistance payments) and a pension received from a foreign superannuation fund are not included in a transfer balance account because these pensions are not superannuation income streams.

Source: This article was first published in Thomson Reuters' Super & Financial Services News Alert. To subscribe to Super & Financial Services News Alert, or for more information, please see

More Cleardocs information on related topics

You can read earlier ClearLaw articles on the 2017 superannuation reforms including the transfer balance cap and how it can be managed.

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