Technical Superannuation Changes

Treasury Law Amendment (2017 Measures No.2) Bill 2017 makes various technical superannuation changes in relation to the Government’s package of changes to superannuation, which generally take effect from 1 July 2017.
One of the technical amendments included in this Bill relates to Limited Recourse Borrowing Arrangement (‘LRBAs’) entered on or after 1 July 2017 and their impact on the $1.6 million pension transfer balance cap.
Where an SMSF has such a borrowing and makes a payment in respect of an LRBA that increases the value of a retirement phase superannuation interest (i.e., a pension interest), a credit will arise in the fund member’s pension transfer balance account.