Transfer Balance Account Reporting - Fast Approaching!

With 30 June 2018 fast approaching, many advisors and tax agents have been continuing to grapple with the superannuation changes. The ATO recently acknowledged this by extending the 2016/17 SMSF lodgement date to 30 June 2018.

Transfer Balance Account Reporting (TBAR) is heading our way and tax agents and advisors will need to be prepared for the additional reporting requirements for SMSFs. TBAR is reported care of a separate form from the SMSF annual return.

It is important to that if an SMSF member has a pre-existing income stream, it must be reported to us on the TBAR on or before 1 July 2018. A pre-existing income stream is an income stream the member was receiving on 30 June 2017 that:

  • continued to be paid to them on or after 1 July 2017, and
  • is in retirement phase

From 1 July 2018, all SMSFs must report events that affect their members' transfer balances. Timeframes for reporting are determined by the total superannuation balances of the SMSF's members:

  • where all members of the SMSF have total superannuation balance of under $1 million, this is required at the same time the annual return is due; or
  • SMSFs that have any members with a total superannuation balance of $1 million or more must report TBAR events within 28 days after the end of the quarter in which the event occurs.

Separate TBAR is required for each member with a maximum of four TBAR events per form. If additional reporting is required, multiple reports are required.

You can view the TBAR form here. The report can be lodged by:

  • Tax Agent Portal
  • Business Portal if you are a business portal user
  • Post

Lodging through the Tax Agent Portal or Business Portal means you will receive an instant receipt.

Please note that if your client has exceeded their transfer balance cap, this should be reported as soon as possible.

There will be late lodgement penalties for failing to comply within the new TBAR guidelines based on penalty units.

With the TBAR requirements in place, you should be reviewing your SMSF client base to see which funds need to report by 1 July 2018 and identify the funds that need to comply with the quarterly TBAR requirements.

If this article has raised questions for you, please contact John Lethbridge, SMSF Specialist Advisor on 1800 333 143.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.