SMSF Association CEO Peter Burgess told SMSF Counsel that if the bill was not passed before the end of this calendar year, the government would have another problem looming: the short period of time super fund members would have to restructure their super-interests.

“This will be particularly important for members with legacy pensions as we do not expect the legacy pension amnesty regulations to be tabled until after the Better Targeted Super Concessions Bill has been passed,” Burgess said.

“Allocations from fund reserves, which usually occur when an inherited pension is switched, will be considered gains for division 296 tax, so it is extremely important that these members have sufficient time to consider their options and to take appropriate measures before this proposal. the tax takes effect.”

There has been growing opposition to the bill, which passed the lower house last month.

On October 9, Member for North Sydney Kylea Tink introduced a amendment asking that the $3 million cap be indexed, which was defeated 52-9.

“The lack of indexation is inconsistent with current accepted tax principles, with most other elements of our supersystem being indexed from contribution limits to balance transfer caps and lump sum benefits,” Tink said.

“Leaving the cap at $3 million unindexed will mean that people in my generation will have a completely different and relatively higher threshold than my children, with the actual threshold likely to drop to $2 million due to inflation around 2040.”

Aaron Dunn, CEO of Smarter SMSF, said the government needs 39 seats to pass the bill in its current form in the Senate and currently has just 25, so would need the support of the Greens to give them 11 seats and three of the six independents, which include Jacqui Lambie, One Nation and the United Australia Party .

He said it was these men who the SMSFA and other industry bodies lobbied for.

“Most of the minor parties would be on the Opposition side and then it becomes a discussion and a debate with independent senators whether they agree to the bill in its current form,” Dunn said.

Burgess added that without amendments, there is no clear path to passage of the bill.

“We continue to liaise with the Senate to ensure that all the unintended consequences and unfairness of unrealized capital gains taxation are well understood,” Burgess said.