The legislation to close the LRBA loophole to include repayment of borrowings under a limited recourse borrowing arrangement has been passed. This means that for all LRBAs entered into after 1 July 2017 a credit to the transfer balance cap will arise where the repayment of an LRBA shifts value between accumulation phase interests and retirement phase interests.
However this legislation isn’t the end of the government’s LRBA changes. The amendment relating to outstanding loan balances on LRBAs was not included in the bill. Treasury have stated they needed further industry consultation prior to legislating. Treasury’s proposal was to count the LRBA debt against the total superannuation balance. If the result of this amendment meant you reached your transfer balance cap (and were therefore unable to contribute further non-concessional contributions) the fund would be stuck with a debt that you would be unable to contribute to repay.
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017 – Limited Recourse Borrowing Arrangements.