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  • ATO to start sending Excess Transfer Balance Determinations from January 2018

    From January 2018 we will start sending Excess Transfer Balance (ETB) Determinations to individuals who have exceeded their transfer balance cap and not rectified the excess. These will generally be based on information APRA funds will have reported to us.

    If an SMSF member receives an ETB Determination from us, remember:

    • If the SMSF trustee has not already reported information to us for the member, that they must do so as soon as possible so we have all the information about the member’s circumstances. If additional time is needed, the member can request an extension of time.
    • The sooner the member removes the amount set out in the ETB Determination out of retirement phase, the less excess transfer balance tax they will pay.
    • They must commute the amount set out in the ETB Determination from retirement phase. Removing it by making a large pension payment will not result in a debit in their transfer balance account, so they will still be in excess of their transfer balance cap.
    • Unless they are commuting a death benefit income stream, they do not need to remove the amount set out in the ETB Determination from the super system. They can keep the excess in an accumulation phase account.
    • The trustee must ensure that the minimum pension payment standards are met at the time they commute the income stream.

    See also:

    31 December 2017 deadline to fix small excesses under transitional rules

    If any SMSF members have exceeded their transfer balance cap by $100,000 or less on 1 July 2017, due to income streams existing on or before 30 June 2017, they have until 31 December 2017 to commute the excess capital, under the transitional rules.

    If SMSF members don't meet this date, they will have to commute the excess capital and excess transfer balance earnings, and pay excess transfer balance tax.

    See also:

      Last modified: 05 Dec 2017QC 54015