The Transfer Balance Cap has seen a dramatic change in the tax status of SMSF assets, Class Ltd has found.
The introduction of the Transfer Balance Cap – which limits the amount that can be held in pension/retirement phase – has been followed by an almost doubling in accumulation phase assets. Almost 25% of SMSF assets in pension phase have lost that tax-free status.
$200 billion increase in SMSF accumulation phase assets
According to the Class figures – in the June 2018 SMSF Benchmark Report – SMSFs held $222 billion worth of assets in accumulation phase in March 2017, . By 30 June 2018 this figure was $422 billion, a 90% increase. The Transfer Balance Cap applies from 1 July 2017.