INCOME TAX ASSESSMENT ACT 1997
This section applies to increase your transfer balance cap for a *financial year (other than the financial year in which you first start to have a *transfer balance account) if:
(a) the *general transfer balance cap is increased as a result of indexation for the financial year; and
(b) at no time before the start of that financial year has the *transfer balance in your transfer balance account at the end of a day exceeded your transfer balance cap. 294-40(2)
Your transfer balance cap is increased for the *financial year by the amount worked out using the following formula:
Unused cap percentage × Indexation increase
(a) identifying the highest *transfer balance in your *transfer balance account at the end of any day up to the end of the previous *financial year; and
(b) identifying the day on which the transfer balance account had that transfer balance at the end of the day, or, if your transfer balance account had that transfer balance at the end of more than one day, the earliest of those days; and
(c) expressing the transfer balance identified in paragraph (a) as a percentage (rounded down to the nearest whole number) of your *transfer balance cap on the day identified in paragraph (b); and
(d) subtracting the result of paragraph (c) from 100%. 294-40(3)
However, if the highest *transfer balance mentioned in paragraph (a) of the definition of unused cap percentage in subsection (2) is less than nil, that unused cap percentage is taken to be 100%.
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