Measures To Address the Issue of Inter-Generational Equity
The government has also introduced other measures to address the issue of inter-generational equity, including:
1. The introduction of a $1.6 million cap on the amount of money that can be held in a retirement income stream;
2. The introduction of a $100,000 cap on the amount of money that can be transferred from an accumulation account to a retirement income stream; and
3. The introduction of a $1.6 million cap on the amount of money that can be held in a superannuation account.
What is a Transfer Balance Cap?
A Transfer Balance Cap (TBC) is a limit placed on the amount of superannuation that can be transferred from an accumulation account into a retirement income stream account. The TBC was introduced by the Australian Government on 1 July 2017 in order to manage the sustainability of the retirement income system. The TBC is currently set at $1.6 million and is indexed in line with the Consumer Price Index (CPI).
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