That’s according to special counsel superannuation at SUPERCentral Michael Hallinan. Noting that the government has proposed measures which will impact LRBAs entered into on or after 1 July this year.
The measures mean any member’s shares of outstanding LRBA debts will be included in the calculation of their total superannuation balance, and this could have ramifications for the member’s ability to make contributions.
“While these measures may be modified or even not enacted, clients who are currently considering entering into an LRBA may see the benefit of making the jump and, ideally settle, before 30 June 2018, to minimise the risk of being caught,” Mr Hallinan said.
“Matters will be a little more complicated for off-the-plan purchases — as there is no drawdown of the loan until the property is close to completion — which may be in one or two years' time.”
Continuing, he noted that while there is currently no exception for transactions of this type, the consultation paper does suggest transitional rules for LRBAs could be instated.