2 days ago
- Business
- AU Financial Review
Should I take my super fund to court for a timing error?
Q: In early August last year, I asked my retail super fund to convert my $500,000 super balance to a pension, but unfortunately, it delayed doing this until mid-September, even though it said this was a same-day service. By the time my super was processed my balance had grown to $525,000 and this higher amount was reported to the Australian Taxation Office for Transfer Balance Cap (TBC) purposes, permanently reducing my available cap space by $25,000. When I complained to my fund that had the pension started in August, it would have grown to $530,000, they credited my account with $5000.
When I also complained that an earlier start would have shown a TBC of $500,000 it responded by saying that rules contained in division 294 of the Income Tax Assessment Act and in superannuation regulations required it to report the actual amount on the processing date.
