Govt dodges LRBA concerns in budget papers
The SMSF industry is still awaiting the government’s response to some of the issues raised in relation to the LRBA amendments, with none of the concerns addressed in the budget.
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.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.