Potential Increase of Transfer Balance Cap: As Australia experiences a rapid increase in inflation, it is expected that the current Transfer Balance Cap limit of $1.7million will increase.
The expected increase may be $1.8million, or even as high as $1.9m, if inflation keeps increasing at the current rate.
Limited Recourse Borrowing Arrangements in the spotlight
The SMSF industry is nervously awaiting the upcoming Federal Budget, particularly with regards to any changes relating to limited recourse borrowing arrangements (LRBAs). Labor has tabled banning LRBAs in previous elections and with the concern around housing affordability, this could be considered as a possible solution.
TBAR lodgement changes
From 1 July 2023, SMSFs will be required to report any transfer balance events within 28 days after the end of the quarter in which the event occurred. Prior to this date, when all members have total superannuation balances less than $1million, the TBAR was due annually, upon lodgement of the SMSF Annual return.
Director ID’s due now!
All existing Directors must apply for their Director ID by 30 November 2022. Your Director ID is a unique identifier that directors must apply for once and keep forever. The fastest and easiest way to apply is to use the myGovID app to log in to ABRS online.
If you would like to discuss this further with one of our superannuation specialists, please contact the Superannuation team.
Downsizer proposed to reduce to 55 years
Parliament is currently reviewing a Bill which proposes to reduce the eligibility age for downsizer contributions to 55 years. The current law allows only members aged 60 years and over to benefit from making these contributions (up to $300,000 per person) from the proceeds of selling their home.