On 26 October 2023, the Assistant Treasurer and Minister for Financial Services announced a measure to reform treatment of the transfer balance cap (TBC) provisions for successor fund transfers (SFTs) in a media releaseOpens in a new window. Then on 13 December 2023, the Australian Government re-announced the measure as part of the Mid-Year Economic and Fiscal Outlook 2023–24 (PDF, 6.2MB)This link will download a file.
The measure is not yet law.
The measure will ensure individuals with a capped defined benefit income stream are not adversely impacted in the event of a successor fund transfer between superannuation funds.
Currently, for recipients of capped defined benefit income streams, the balance of their transfer balance account can be unintentionally affected as a result of the original income stream being treated as ceasing and a new one beginning.
This measure is intended to be retrospectively applied from 1 July 2017.
Treasury released the exposure draft and explanatory statement for consultationOpens in a new window from 3 April to 24 April 2024.