While the proposed amendments for LRBAs in relation to the transfer balance cap were mentioned in the budget papers, the government did not provide any update on the amendments following the industry consultation it conducted between April 27 and 3 May.
You can read about the finer details of the proposal here. The amendments, if passed, are set to take effect on or after the first day of the financial quarter that occurs after the day the changes receive royal assent.
PwC director of private clients, Liz Westover, said timing may have been an issue for the government as there might not have been time to adequately consider submissions before the budget papers were finalised.
“I have concerns as to whether or not those measures were targeted enough to resolve the integrity [issues]. In fact, we’re going to have a lot more people that are impacted by it that really aren’t doing anything wrong,” Ms Westover said.
The SMSF Academy’s Aaron Dunn said the issues and industry concerns that have surfaced since the draft legislation was first released warrant further consultation and dialogue with the SMSF sector.
“It would be fair to say that the calculations to apply credits to a member’s transfer balance account from an accumulation phase interest are overly complex and warrant further industry consultation,” he said.