Recent legislative changes will now mean that an LRBA established since 1 July 2018, will count towards a members total superannuation balance under certain circumstances.
Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 received royal assent in October, and now requires SMSF’s to report the outstanding balance on an LRBA (established after 1 July 2018) on the SMSF annual return where either:
- The LRBA is with a related party of the SMSF, or
- A Fund member has met a condition of release with a nil cashing restriction (e.g. over 65).
As a result of an increase to a member’s total superannuation balance, this may create circumstances where clients total superannuation balances exceed $1,600,000 – and prohibit the member from making a non-concessional contribution.
If you have any questions, please don’t hesitate to contact me regarding these changes.
Jason Roccasalvo
Partner – Superannuation Advisory & Audit
jasonr@tagfinancial.com.au
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page.