“The point we will make to Ms Lambie is that when we have met with other members of the crossbench, they have spoken about how this is a most egregious tax and we hope that she will be receptive to our concerns,” Burgess told SMSF Adviser.

“It’s only as the bill gets closer to the Senate that we have been able to set up this meeting, and we hope she will be receptive to our concerns. We know that this legislation will have a big impact on farmers and she has many farmers in her electorate. We are hopeful she will see the unintended consequence of the taxing of unrealised gains, something that no other pension system in the world does.”

Burgess said he has also heard that Independent Member for North Sydney, Kylea Tink, would put forward an amendment to index the cap.

“While the government has the numbers in the lower house we don’t expect to see any changes to the bill before it goes to the Senate,” Burgess said.

“But off the back of the Senate inquiry into the $3 million cap, it was noted that the Greens had said they would not support the cap unless it was reduced to $2 million and indexed and that the use of LRBAs also be banned.”

He added there have been rumours that some independent MPs would like to see a clawback position included in the bill, which would mean that in a negative income year, funds could claw back some of the tax paid in the previous year.

“That would require some substantial amendments and it is only rumoured at the moment, but it has been feted by some independents,” he said.

Burgess said it is more than likely the bill will not be in the Senate until next week at the earliest, and added the SMSFA is hoping the crossbenchers will be able to force some amendments through.

“It’s fair to say the members of the senate crossbench are concerned about the two most outrageous aspects of this legislation – the taxing of unrealised gains and the lack of indexation,” he said.

Although it is unlikely the legislation will be passed by 30 June as the government had planned, Burgess reminded SMSF trustees that the impact of the new tax will not be tested until 2026.

“It is certainly a controversial bill and we saw that when it was debated a few weeks ago with a number of politicians voicing their concern,” he said.

“It is not as straightforward as the government thought it could be, and if they have to make amendments it will delay the process even more.”