The Transfer Balance Cap of $1.6m will remain – with no increase for the 2021 financial year.
The ATO have advised that indexation of the general transfer balance cap won’t occur on 1 July as the ‘All Groups’ Consumer Price Index (CPI) figure for the December 2019 quarter has not exceeded 116.9 (it was 116.2).
The ATO now anticipate the general transfer balance cap is likely to be indexed on 1 July 2021 – but this will depend on the CPI figure.
An increase to $1.7m will not necessarily give added benefit for those who have already moved their funds to retirement phase – but will increase the amount new retirees can transfer into retirement phase.
