Transfer Balance Account Reporting

Following the introduction of the transfer balance cap (TBC) in 2017, the Australian Taxation Office (ATO) has introduced new reporting obligations for Self-Managed Superannuation Funds (SMSFs).

Commencing from 1 July 2018, SMSFs will be required to report events to the ATO which impact on an individual’s transfer balance account (TBA). This reporting is required to assist the ATO to track an individual’s TBA and to administer the tax consequences if the individual’s cap is exceeded.

You should note that the TBAR includes information from all superannuation pension accounts via SMSF, Retail, Employer and Industry funds, annuity providers and other funds. It is on a consolidated basis and not per account.

Events that need to be reported

An SMSF is only required to report if one of its members has an event that impacts their transfer balance account. Events which impact a member’s account and are therefore required to be reported are as follows:

  • The commencement of a new superannuation income stream
  • Pension commutations
  • The cessation of a superannuation income stream

Super funds are also required to report the value of existing superannuation income streams as at 30 June 2017, and in most cases have up until 1 July 2018 to do so.  This is something that Thorntons will attend to for our clients as part of the 2016/17 year-end completion.

SMSFs with members who only have an accumulation interest in the fund will not be required to report transfer balance events, until a superannuation income stream is commenced.

Timing of Reporting

Funds where one or more members at 30 June 2017 had a total superannuation balances equal to or greater than $1 million are required to report the above events on a quarterly basis, within 28 days of the end of each quarter.

If at 30 June 2017, the fund had no members with a total superannuation balance equal to or greater than $1 million, the above listed events are only required to be reported to the ATO annually, due at the same time as the annual return.

What do you need to do?

In the next couple of weeks we will be contacting clients who are affected by the above obligations.   In the mean time please do not hesitate to contact us if you have any questions.

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Are you looking for more information? Talk to one of our specialists today.