POWERED BY MOMENTUM MEDIA
ATO to issue excess transfer balance cap notices
The Australian Taxation Office (ATO) will start issuing excess transfer balance cap (ETB) determinations to taxpayers with over $1.6 million in their superannuation in the pension phase, with SUPERCentral advising that individuals receiving such a notice act on it quickly.
Penalties could be imposed for not complying with the determination, as well the ATO potentially directing the superannuation trustee to transfer sufficient pension balances out of pension phase.
SUPERCentral advised that individuals receiving the notice should not ignore the determination, as “to … do nothing is the worst response”. They should also remember that they could not apply the same objection and review procedures to a determination as they could to tax system notices.
They should then review the accuracy of the determination, as it could be that the incorrect information was provided to the ATO. The organisation recommended using the myGov website to review the TBAR amounts which had been reported, and also to check that a commutation of pension had been reported.
Finally, should there be an excess, SUPERCentral said that individuals should commute it by the due date.
“An excess over $1.6 million of a transfer balance account can only be ‘corrected’ by having a TBAR debit equal to the excess. This means commuting (in part or in full) one or more pensions … Doing nothing will only cause the ATO to effect a mandatory commutation of whichever pension the ATO chooses (and at greater transaction cost to the taxpayer),” the group advises.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
