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September 2021

We will reimagine a more simple, automated world for our customers and they will love it!

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Plan for the future with SuperGuardian& Class

2

Technical Compliance Analyst

• Over 10 years of industry experience, 4 years with Class

• SMSF Specialist Advisor™ (SSA™)

• Registered Tax Agent

Zahir PatelEducation Manager

• Over 25 years of industry experience, 2 years with SuperGuardian

• SMSF Specialist Advisor™ (SSA™)

Tim Miller

Agenda1. Get an overview of how an individual's personal transfer

balance cap is indexed

2. Find out how the personal transfer balance cap is reflected through the ATO system

3. Learn how to use personal transfer balance cap for pension establishment and lump sum payments

4. Understand how indexation of contribution caps affects concessional carry forward rules

5. Ensure you are across how indexation of total super balance impacts on non-concessional bring forward rules

6. Obtain a handy checklist to bring a new member to the SMSF in Class

DisclaimerThe information in this presentation contains general advice and is provided by SuperGuardian Pty Ltd AFSL No. 485643. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs.

You should obtain and read the Product Disclosure Statement (PDS) before making any decision to acquire any financial product referred to in this presentation.

Please refer to our FSG (available at https://www.superguardian.com.au/pdfs/Financial-Services-Guide.pdf) for contact information and information about remuneration and associations with product issuers.

A bit about SuperGuardianWe ARE:

An independently owned, industry leading Chartered Accounting Firm with 19 years of experience in full-service SMSF administration

We PROVIDE:

• A mail-house solution; so you don’t have to worry about all the paperwork associated with investing

• daily online reporting; so you have data to inform your decisions

• expert support; so you can ask for help and get great solutions

• on-time tax returns; so the Tax office is happy and tax refunds prompt

• predictable fees; so you don’t get unwelcome surprises

Indexation• Two critical indexation calculations for contribution and other purposes

• Concessional contribution cap – indexed subject to Average Weekly Ordinary Times Earnings (AWOTE)• $2,500 (rounding amount)

• General Transfer Balance cap – indexed subject to Consumer Price Index (CPI)• $100,000 (rounding amount)

• Indexation occurs when legislated formula results in an amount = or > than above rounding amounts

What has happened with indexation• 1 July 2021 – concessional contribution cap = $27,500

• 1 July 2021 – non-concessional contribution cap = $110,000 • Non-concessional cap is 4 x concessional cap

• 1 July 2021 – bring-forward NCC maximum = $330,000• Eligible if under 67 on 1 July and meet total super balance

requirements

• 1 July 2021 – Transfer Balance Cap = $1,700,000

Additional changes as a result of indexation• Total Superannuation Balance is determining factor with

regards to various eligibility requirements:– Non-concessional contributions (and bring-forward rules) – Subject

to General Transfer Balance Cap (GTBC) - $1.7m– Government Co-contributions eligibility (GTBC) - $1.7m– Spouse Contribution Tax Offset eligibility (GTBC) - $1.7m

• What hasn’t changed– Catch-up concessional contributions - $500,000– Post 67 – 12 month work test exemption - $300,000– Disregarded Small Fund Assets - $1.6m

Transactional considerations • Which transactions does indexation have the

greatest immediate impact on?• Pension commencements (personal transfer balance

cap) • Carry forward catch-up concessional contributions• Concessional contributions reserves• Bring-forward non-concessional contributions

• Let’s look at how

Indexing the personal cap• General Cap indexed in

$100,000 increments• Personal Cap indexation

subject to unused cap space• Only available to individuals

who haven’t used their entire cap space

Personal Transfer Balance Cap -Proportioning

$1.6m General Transfer Balance Cap

$1.2m Pension commencement

25% of indexed amount $100k = $25k

$400k available

$1.7m General Transfer Balance Cap indexed

$425k available

75% of Transfer Balance Cap

2017/18

2021/22

Personal Transfer Balance Cap = $1.625m

PTBC = $1.6m

Unused Cap = 25%

TBA = $1.2m

Proportional Indexation & Highest TBA Balance

$1.6m General Transfer Balance Cap

$1.2m Pension Commencement

$400k Partial Commutation

$1.7m General Transfer Balance Cap

2017/18

1/10/17

1/1/18

2021/22

1/8/22

Unused Cap = 25%

TBA = $1.2m

PTBC = $100k x 25% = $25k2021/22 = $1.625m

$825k Pension Commencement

Available Cap = 0%

TBA = $1.625m

TBA = $800k

Personal Transfer Balance Cap = $1.625m

Personal Transfer Balance Cap = $1.6m

Available Cap = 50%

Accessing ATO Portal

Step 1. Login to your MyGov account at https://my.gov.au/

Step 2. Select ATO from the list of services linked on your myGov account:

Accessing ATO PortalStep 3. Select the Super tab, then Information, then Transfer balance cap

Accessing ATO PortalValuable information:• Current personal transfer balance cap• Highest ever transfer balance• Indexation entitlement

• Capped defined benefit balance

Accessing ATO PortalThis will show debits and credits:• Commencements• Commutations• Other credits • Other debits

Accessing ATO PortalOther valuable information:• Total Superannuation Balance• Bring forward arrangement• Carry forward concessional

contributions

1/7/18 1/7/19 1/7/20

$10k $15k

1/7/21

Available cap $?

$25k $25k

$15k $25k

$25k

$25k

$20k

$27.5k

1/7/23

$25k $32.5k

Total Super

Balance<$500k

Cap

C/F

Actual

$27.5k $25k

1/7/22 1/7/24

$27.5k $27.5k

$32.5k $?$20k

Available cap

$47,500

Carry forward Catch-up Concessional

18/19 19/20 20/21 21/22 22/23 23/24Year

Contribution

Contribution reserving

1/7/2020 1/6/2021

Contribute $25,000

30/6/2021

Contribute $27,500

$25,000 $27,500

Contribution deductible in year of receiptContribution assessable against cap in year of

allocation

Allocate $27,500

28/7/2021

2020/2021 2021/2022

Cap

Contributions must be allocated within 28 days following the end of the month which they are received

Bring-forward as a result of indexationTotal superannuation balance

previous 30 June(30 June 2021)

Non-concessional contributions cap for the first

year

Bring forward period

Less than $1.48 million $330,000 3 years

$1.48 million to less than $1.59 million

$220,000 2 years

$1.59 million to less than $1.7 million

$110,000 No bring forward period, general non-concessional contributions cap applies

$1.7 million or more Nil N/A

How much can be contributed? How far should we go back?

1/7/211/7/201/7/191/7/18

$100,000$150,000$0 ?1/7/171/7/16

$100,000 Total Super

Balance<$1.7m

Up to $330,000 if TSB < $1.48m (under 67 – July)

$150,000

Bring-forward – moving forward

How much can be contributed? How far should we go back?

1/7/211/7/201/7/191/7/18

$100,000$150,000$0 ?1/7/171/7/16

$100,000 Total Super

Balance<$1.7m

Only $50,000 if TSB < $1.7m

$100,000

Bring-forward – moving forward

23

Checklist to bring a new member to the existing SMSF in Class

Class Checklist

Total Super Balance (TSB)

Non-Concessional Contributions (Bring Forward Rule)

Historical Concessional Contributions

Transfer Balance Account Reporting (TBAR)

Existing Pension Details (If Any)

Case StudyJohn Smith, age 63 (D.O.B 2/12/1957) and retired on 2/12/2020, joined his family SMSF, Smith Family SF.

Total Super Balance as at 30/06/2021 • $408,000

Non-Concessional Contributions (BFR) • FY2019-20 - $120,000 • FY2020-21 - NIL

Concessional Contributions • FY2018-19 - $10,000• FY2019-20 - $10,000• FY2020-21 - $12,000• From 1/7/2021 to 1/8/2021 - $2,000

TBAR • Pension Commencement 02/12/2020 (Retired) $400,000

• Pension commutation 1/8/2021 $300,000

Q & A