Following changes to superannuation coming into effect from 1 July 2017, some super members will need to calculate their ‘total superannuation balance’ to work out their eligibility for a number of contribution measures.
A member’s ‘total superannuation balance’ refers to an individual’s total super interests on a given date. The ‘total superannuation balance’ is relevant when working out eligibility for:
– the unused concessional contributions cap carry-forward
– the non-concessional contributions cap and the two- or three-year bring-forward period
– the government co-contribution
– the tax offset for spouse contributions.
SMSF trustees and trustees of a small APRA fund will need to know their members’ total superannuation balances to determine whether they can use the segregated assets method to calculate exempt current pension income (ECPI).
‘Total superannuation balance’ is generally calculated at the end of 30 June of each financial year. The first date it will be used is 30 June 2017 to determine eligibility for the aforementioned measures.
To calculate your ‘total superannuation balance’ add together:
– the accumulation phase value of your super interests that are not in the retirement phase
– if you have a super income stream in the retirement phase value – your ‘transfer balance’ or your ‘modified transfer balance’ (but not if it’s less than nil)
– the amount of any rollover super benefit not already reflected in the accumulation phase value of your super interests or your transfer balance (rollovers in transit between super funds on 30 June).
Once you have added these together, subtract any personal injury or structured settlement contributions that have been paid into your super fund(s).
Transitional provisions for working out your retirement phase value of your ‘total superannuation balance’ at the end of 30 June 2017 apply as a transfer balance account does not commence until 1 July 2017.
The transitional arrangements apply so that your transfer balance at the end of 30 June 2017 is equal to:
– the sum of your transfer balance credits just after the start of 1 July 2017, less
– any debits in relation to payment splits (if applicable).
This is subject to the transfer balance modifications for account-based income streams.