INCOME TAX ASSESSMENT ACT 1997 - SECT 294.185 Transfer balance cap--special rule for child recipient

INCOME TAX ASSESSMENT ACT 1997 - SECT 294.185

  (1)   Despite section   294 - 35, your transfer balance cap on a day is the sum of the cap increments that have arisen under this Subdivision on and before that day.

Note:   Your transfer balance cap is not worked out on a financial year basis and it is not indexed.

  (2)   However, if there are one or more * superannuation income streams of which you are, on that day, a * retirement phase recipient but not a * child recipient, your transfer balance cap on that day is the sum of:

  (a)   the sum of the cap increments that have arisen under this Subdivision on and before that day; and

  (b)   your transfer balance cap for the * financial year in which the day falls, worked out disregarding:

  (i)   any cap increments that arise under this Subdivision; and

  (ii)   any * transfer balance credits or * transfer balance debits that have arisen in your * transfer balance account in respect of superannuation income streams of which you are a child recipient.

Note:   Paragraph   (b) is the transfer balance cap you would have if you were not a child recipient of any income stream. Disregarding credits, debits and cap increments allows this cap to be indexed appropriately under section   294 - 40 (which is about proportional indexation).