Superannuation Transfer Balance Account Report (TBAR) is a new regime where SMSFs will be required to report those events which impact on a Member’s transfer balance account on a real-time basis. There has been a lot of controversy over TBAR. The Tax Office has now issued verdict on SMSF events-based reporting.
The Tax Office’s implementation of SMSF event-based reporting from 1 July 2018 will be limited to those SMSFs with Members whose total superannuation account balances is $1 million or more. The SMSFs will be required to report events impacting Members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
There are certain events which must be reported to the Tax Office under TBAR. Please note investment gains or losses and pension payments do not affect the balance of your transfer balance account. For more guidance, please download the ATO booklet here:
Trustees can download the TBAR report here to report the events directly to the Tax Office. Alternatively, we charge $350 for preparing and lodging a TBAR report. Please note separate TBAR reports are required for each Member. A maximum of four events for a Member can be reported in one TBAR report.
It is important for Trustees to lodge the TBAR report on time. Otherwise, your Member’s transfer balance account and total super balance may be adversely affected and the Trustee may also be subject to compliance action and penalties.
For more information on the Superannuation Transfer Balance Cap, please visit our $1.6m Transfer Balance Cap page here.