Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
2 February 2021
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'?
Most helpful response
9 February 2021
11 February 2021
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.
4 February 2021
We will look into this one for you.
Tell us about your ATO Community experience and help us improve it for everyone.
Australian Taxation Office
Working for all Australians