Govt releases draft legislation on LRBA changes
Draft legislation has been released which addresses the government’s concerns about the potential for SMSF members to use LRBAs to circumvent their contribution caps.
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.