Show download pdf controls
  • Transfer balance cap update

    Commutation authorities issuing now

    We have started issuing Commissioner commutation authorities to funds where a member has not commuted their income streams by the due date. Approximately 550 commutation authorities were issued late in the week beginning Monday 30 April.

    Removal of date of birth requirement

    In response to your feedback, we're removing the date of birth from the list of approved form requirements that you need to tell your member when notifying them about your response to a commutation authority.

    As we intend to remove this requirement, we won't take compliance action if you don't provide the member's date of birth to them when notifying them about your response to a commutation authority.

    Commutation process

    Under section 136-85 of the Taxation Administration Act 1953 you must notify the Commissioner of your response to a commutation authority within 60 days after the commutation authority is issued.

    Compliance action

    We won't take compliance action against an APRA regulated fund:

    • provided any commutation has occurred by the due date stated in the commutation authority
    • if you report your response to a commutation authority in line with your regular TBAR reporting, ie within 10 business days after the end of the month in which the event occurred
    • unless we see a pattern that causes us concern.

    Note: if you are unable to commute the amount in full delays in reporting this may impact your member as it will take longer for them to resolve their excess transfer balance position.

    Next step:

    • If you have questions about a commutation authority or the commutation authority process email SuperCRT@ato.gov.au.

    See also:

    Excess transfer balance tax notices of assessment issuing now

    We've started issuing excess transfer balance (ETB) tax notices of assessment to individuals, with approximately 1,800 notices issuing in April.

    ETB tax is calculated on excess transfer balance earnings from when the individual started to have an excess transfer balance to when the transfer balance account is no longer in excess. The tax rate is set at 15% for an excess transfer balance in 2017–18.

    ETB tax is due and payable 21 days after the assessment is issued and a general interest charge will accrue if any amount remains unpaid after the due date. ETB tax cannot be paid by super providers.

    See also:

      Last modified: 08 May 2018QC 55349