A number of changes to Superannuation came into effect on 1 July 2017, which include the requirement for Australian resident Superannuation Funds to provide a variety of information to the ATO. The ATO has developed the Transfer Balance Account Report (TBAR) for Superfunds to lodge this new information.
The TBAR is used to capture information about super amounts moving into and out of retirement phase accounts. This will enable the ATO to record and track an individual’s balance, which is necessary for the management of both the transfer balance cap and total super balance which affect the treatment of several of the new Superfund measures.
All super providers, including self-managed super funds (SMSFs), with members in retirement phase will be required to lodge TBARs, although frequency of reporting will differ (See Recent ATO Update below)
Events to be reported in the TBAR include:
- super income streams in existence just before 1 July 2017
- any of the following events that occur on or after 1 July 2017
- superannuation income streams that have commenced in retirement phase
- limited recourse borrowing arrangement payments
- member commutations
- compliance with a commutation authority issued by the Commissioner
- personal injury (structured settlement) contributions
- super income streams that stop being in retirement phase.
Recent ATO update
The ATO announced on 9 November 2017 that SMSFs would be required to report TBAR events from 1 July 2018. SMSFs with members that have total super account balances of $1m or more will be required to report TBAR events within 28 days after the end of the quarter in which the event occurs. SMSFs with members’ total super balances less than $1m could choose to report events at the same time that the fund lodges its SMSF annual return.
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