Late last month, SMSF Adviser reported that the government was mulling amending its superannuation reform package, which would see the outstanding balance of an LRBA count towards a member’s total superannuation balance.
Draft legislation for the proposed changes were released this evening, and you can access them in full here.
“The draft legislation will include the use of an LRBA in a member’s total superannuation balance and transfer balance cap to the transfer balance cap and total superannuation balance,” Treasury confirmed.
“The amendments will address concerns about the ability of SMSF members to use LRBAs to circumvent contribution caps and effectively transfer accumulation growth to retirement phase that is not captured by the transfer balance cap,” Treasury said.
Submissions to government on the proposed changes close May 3.
More to come.
The coalition government and in particular the Minister for Small Business, the Hon. Michael McCormack MP, and the Minister for Finance ( @M_McCormackMP ), the Hon. Mathias Cormann, really have a lot to answer for when it comes to kicking millions of small business owners in the guts. These proposed amendments will impact most on small business owners with a SMSF. By all means introduce a prohibition on geared off the plan or passive residential investment property in SMSFs using an LRBA. But for goodness sake don’t go after small business owners looking to purchase buisness real property through their SMSF.
Introducing amendments that will adversely impact on small business owners and their ability to provide a reasonable secure foundation for their business and future retirement – just doesn’t make logical policy sense. Especially coming from a ‘conservative’ government who is supposed to be pro business. Isn’t the sacrifice small business owners make to be the “engine of the economy” (in the government’s own words) significant enough – without these small business owners who are SMSF trustees having to be subjected to being a punching bag for political gain.
Small business owners with an SMSF want a government that will implement policies that support and encourage small business growth, employment, the economy and a self-funded retirement. Not some ill-conceived legislation on the run for political mileage.
Will Instalment Warrants be included in this?