Transfer balance account and lifetime income streams

As soon as the lifetime income steam product has the benefit of the earnings tax exemption, the product will be assessed for transfer balances purposes and a credit will be made to the transfer balance account of the investor.

Returning to Bertie and Jeeves – Jeeves will have to complete a transfer balance account reports (as Bertie is incapable of doing anything like work) the first for the allocated pension and the second for the deferred superannuation income stream.  The first report will be for $600,000 while the second will be for $200,000.  Consequently Bertie’s transfer balance account will have two credit entries and a balance of $800,000.

Significantly for Bertie when in 20 years’ time Bertie attains age 85 and this deferred superannuation income stream product commences payment, there is no further transfer balance cap testing of the product.