Self-managed super funds (SMSFs) have new reporting obligations from 1 July 2018 due to the new transfer balance cap measure and the event-based reporting framework.
The transfer balance account report (TBAR) is a separate form to be lodged with the Australian Taxation Office, and is used to record and track an individual’s transfer balance cap.
What needs to be reported & when?
All SMSFs that were paying a retirement phase income stream at 30 June 2017 (i.e. not a transition to retirement pension) need to complete and lodge a TBAR on or before 1 July 2018 to report the balance of each pension account individually, for each member as at 30 June 2017.
For example if a member has 3 pension accounts in their SMSF, then 3 TBARs will be required to be lodged for that member.
Reporting of 2018 and future transfer balance account events
The timing of when the 2018 events and future year events are required to be reported is determined by the total superannuation balances (TSB) of the SMSF’s members at 1 July 2017.
Where all members of the SMSF have a total superannuation balance of less than $1 million, the SMSF can report the transfer balance account events at the same time as when the annual income tax return is due.
For SMSFs that have any member with a total super balance of $ 1 million or more (regardless of whether that member is receiving a pension) must report the 2018 events for all pension members, along with the events for the September 2018 quarter on the TBAR which is due for lodgement with the ATO by 28 October 2018.
These funds then need to record each subsequent quarter’s events within 28 days after the end of the quarter in which the event occurs. For example, if a pension commences on 24 November 2018 then this will be reported on the December 2018 quarter TBAR which would be due for lodgement on the 28 January 2019.
What will DLA do?
If you are required to report your pension account balances, we will send you a letter with more information regarding the new events based reporting regime.
We are waiting for our provider to release a software update next month to allow the transfer balance account reports to be lodged electronically. Once this is released, we will forward you the TBARs that are required to be lodged before 1 July 2018.
We will also be in contact with all SMSF trustees to let you know if you will be required to comply with the quarterly reporting framework. If you do need to report quarterly, we will provide you with additional information regarding what we will need from you to assist us with preparing these transfer balances account reports going forward.
If you have any questions regarding the above, or to review your super / SMSF strategies, please contact DLA Partners on (07) 3863 9444 or by emailing firstname.lastname@example.org.
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This information does not constitute financial or legal advice and is for general information purposes only. Please contact DLA Partners for specific advice relating to your particular circumstances.