“There’s some confusion around ‘Well, I don’t know what my account balance is. I don’t know if I’m going to be in excess of the $1.6 million threshold’,” Mr Burgess said.

“In our view, we think it’s prudent for trustees to put in place a resolution now, or at least by the 30th of June, that says that any excess amount over the $1.6 million threshold at 30 June will be transferred to the accumulation phase.”

Mr Burgess suggested that this could be a resolution or trustee minute which states that in the event that there’s any excess above the $1.6 million, it will be transferred to the accumulation phase.

“We’re seeking some clarification as to whether this will be acceptable [but] we can’t see any reason why it wouldn’t be,” he said.

“This is an action they can be taking right now and it makes the process a little easier.”

Mr Burgess said if an SMSF trustee intends to cash out the excess instead, the SMSF practitioner and client will need to take action and withdraw that amount before 1 July 2017.