Hello Chasers,
Just as the media bombard us with all of the negativity about interest rate rises and the doom and gloom facing us all, there is a ‘silver lining’ for those working towards retirement.
The Transfer Balance Cap (TBC) is a limit on the amount of money that an individual can transfer from their accumulation account in their superannuation fund to a retirement account without incurring additional tax. The retirement account can be in the form of an account-based pension or another form of retirement income stream.
Before the introduction of TBC on July 1, 2017, there was no limit on how much money a person could transfer from an accumulation account to a retirement account. As a result, some individuals were able to transfer significant amounts of money to a tax-free retirement account, resulting in a loss of tax revenue for the government.
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