A potential federal budget measure granting retirees an exemption to the $1.6 million transfer balance cap and $1.6 million total super balance rules for downsizing by selling the family home has been backed by the SMSF Association.

The impending implementation of the new super rules should be the catalyst for advisers to encourage SMSF members to switch from a transition-to-retirement (TTR) income stream to an account-based pension, a technical specialist has said.

Treasury’s last minute proposal to count assets under a limited recourse borrowing arrangement (LRBA) towards an individual’s super balance and transfer balance cap will leave financial advisers exposed to risk if legislated.