Treasury's Proposed Integrity Measures Effecting SMSF's

The Government has proposed new integrity measures which will affect SMSFs entering into new borrowing arrangements after 30 June 2018.

Treasury proposes that where an amount is outstanding under a limited borrowing recourse arrangement (LRBA), there will be an additional amount added to a member’s total superannuation balance. This will prevent a member taking out a benefit and then lending it back to the fund on a limited recourse basis. These measures should only affect those funds whose members have a total superannuation balance exceeding or approaching $1.6M.

These proposed changes will apply to new borrowings from 1 July 2018.