April 08, 2024

Luke on 2CC – Transfer balance cap, what you need to know!

18 minutes

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired on Friday 5 April 2024. We hope everyone had a Happy Easter, given there was no show last week. Nicole Overall joins Luke this week as Leon is on holidays. This week’s show considers the transfer balance cap. What is it and how does it affect your superannuation account? The show encourages listeners to think about their transfer balance cap when planning their retirement options. Thanks for joining us on 2CC or your favourite podcast streaming service.

Key topics covered include:

What is the transfer balance cap and does it get indexed?

The cap is currently $1.7 million but will rise to $1.9 million on 1 July 2024.

Are there differences between accumulation funds defined benefit funds with the cap? Yes there are!

What is the excess component and how much tax will you pay on it?

Do I get the full amount when indexation occurs?

Can I put more money into super when I reach my transfer balance cap?

Why the cap shouldn’t stop contributing to super!

Can you use your partner’s super if you reach your cap? Yes you can!

Can you still make a downsizer contribution if you’ve reached your transfer balance cap? Yes you can!

Luke shares his top tips when thinking about superannuation and transfer balance caps.

https://www.envisionfinancial.com.au/wp-content/uploads/2024/04/The-Strategy-Stacker-Luke-Talks-Money-05042024.mp3

Also available on Apple Podcasts and Spotify – ‘The Strategy Stacker – Luke Talks Money’

Do you need to consider the transfer balance cap as part of your planning?

No one wants to pay more tax than they’re required to at retirement. But the transfer balance cap might be preferable depending on your personal tax rate. Seek advice before you retire to understand your options.

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation.

Luke will return to 2CC to talk about other ‘Money Matters’ soon. You can also catch up with ‘The Strategy Stacker – Luke Talks Money’ podcast at a time that suits you.

We look forward to your company again and Luke’s book Smart Money Strategy is out now.

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By Luke Smith