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Re: child death benefit income income streams and the transfer balance cap

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In the ATO website - under 'Indexation of the General Transfer Balance Cap' - there is an example for 'Changes affecting child death benefit income streams'.  

In the example, it states that 'Just before indexation, Kane's child death benefit cap increment is $17,082'. 

However, in the next para, it states that 'On July 2021 when indexation of the general TBC occurs, Kane's child cap increment will remain at $17,982.'

Should this last line read '...will remain at $17,082.'?

 

And how do you arrive at Kane's unused cap percentage being 30% of $1.6m'?

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Community Moderator

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Hi @James56 

 

Thanks for your patience.

 

Thankyou for letting us know of these errors we have passed on the information and the errors have been corrected.

 

The last line should read “On 1 July 2021 when indexation of the general transfer balance cap occurs, Kane's child cap increment will remain at $17,982”

 

Applying this Kane's example:

This is how the example should be written, we have reported this so it can be amended. 


Kane's death benefit income stream and modified personal transfer balance cap of $17,082 is disregarded when calculating if Kane is entitled to proportional indexation of their transfer balance cap.

The highest ever balance of Kane's transfer balance cap between 1 July 2017 and 30 June 2021 is $1.28 million.

Kane's unused cap percentage is 20% of $1.6 million.

Kane's personal transfer balance cap will be indexed by 20% of $100,000.
Kane's personal transfer balance cap after indexation on 1 July 2021 is $ 1.62

 

Thankyou for taking the time to let us know of these issue's.

2 REPLIES 2

Community Moderator

Replies 0

Hi @James56 

 

We will look into this one for you.

Most helpful response

Community Moderator

Replies 0

Hi @James56 

 

Thanks for your patience.

 

Thankyou for letting us know of these errors we have passed on the information and the errors have been corrected.

 

The last line should read “On 1 July 2021 when indexation of the general transfer balance cap occurs, Kane's child cap increment will remain at $17,982”

 

Applying this Kane's example:

This is how the example should be written, we have reported this so it can be amended. 


Kane's death benefit income stream and modified personal transfer balance cap of $17,082 is disregarded when calculating if Kane is entitled to proportional indexation of their transfer balance cap.

The highest ever balance of Kane's transfer balance cap between 1 July 2017 and 30 June 2021 is $1.28 million.

Kane's unused cap percentage is 20% of $1.6 million.

Kane's personal transfer balance cap will be indexed by 20% of $100,000.
Kane's personal transfer balance cap after indexation on 1 July 2021 is $ 1.62

 

Thankyou for taking the time to let us know of these issue's.