The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today released for public consultation draft legislation and a consultation paper entitled ‘Superannuation Taxation Integrity Measures’.
This consultation paper covers two superannuation taxation measures that were announced in the 2017-18 Budget and support the integrity of the Government’s comprehensive suite of superannuation taxation reforms.
The first measure includes a member’s share of the outstanding balance of a Limited Recourse Borrowing Arrangement (LRBA) in their total superannuation balance (TSB). The second measure ensures that non-arm’s length expenditure is taken into account when determining whether the non-arm’s length income (NALI) taxation rules apply to a transaction.
These measures are intended to ensure that LRBAs or related party transactions cannot be used to circumvent contribution caps. They are not intended to prevent the use of LRBAs.
The consultation paper explains how the measures are intended to operate and seeks feedback on whether they meet their policy objectives; whether their objectives could be achieved in some other way; and what may be the unintended consequences of the measures.
Stakeholders are invited to comment on the consultation paper by lodging a submission online via the Treasury website. Submissions will close on Friday 9 February 2018.