Changes to SMSF LRBAs top BT Advice list of queries

Share this article:

Changes to SMSF Limited Recourse Borrowing Arrangements (LRBAs) has topped the list of adviser queries for the June quarter, according to BT.

Changes were made to include LRBAs in the calculation of the Transfer Balance Cap, with further legislation expected later in 2017 to include LRBAs in the calculation of the Total Superannuation Balance.

BT Technical Consultant, Tim Howard, said the changes to LRBAs were easily the most topical query from advisers for the June quarter.

Mr Howard said the measures had broadly been introduced to prevent people from transferring funds from accumulation to retirement phases using a loan repayment, potentially circumventing the Transfer Balance Cap.

“This measure will likely only affect a minority of clients and it’s important to note that existing LRBAs in place prior to 1 July 2017 will not be impacted,” he said. He also noted that it was only proposed at this stage to include LRBAs in the Total Super Balance.

“Due to the level of complexity in these measures, it’s timely to seek expert counsel so clients are aware of the changes. However for now no immediate change is required to client strategies and it’s business as usual, while we await any further consultation,” said Mr Howard.

Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?

This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.

Share this article:

Leave a Reply

Your email address will not be published. Required fields are marked *