On 1 July 2023 indexation of the transfer balance cap (TBC) will occur. This indexation will increase the TBC by $200,000.
This TBC will not apply to all individuals. Individuals will have a TBC between $1.6 and $1.9m. If an individual has a TBC, they will only be able to view this on the ATO services provided through MyGov.
The ATO will calculate each persons’ TBC based on information reported to them. The ATO will be closely monitoring anyone reporting pre-1 July 2023 events after that date, and there will be consequences.
The ATO is urging members to report all events which happened in the 2022-2023 income year as soon as possible, to give members a clear understanding of their position.
Indexation of the TBC will also lead to changes among other caps, such as the defined benefit cap which will be indexed to $118,750.
Source: ATO
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.