ATO is streamlining Transfer Balance Account Reporting (TBAR) for Self-Managed Super Funds (SMSFs). They have taken that action consulting the community, industry, and tax professionals on streamlining the lodgement of transfer balance account event-based reporting for all SMSFs.
To streamline TBAR for SMSFs, from 1 July 2023 ATO is:
- removing the total super balance threshold
- require all SMSFs to report 28 days after the end of the quarter in which the event occurred.
From 1 July 2023, all SMSFs must report transfer balance account events 28 days after the end of the quarter which the event occurred (28 Jan, 28 April, 28 July, 28 October). The obligation to report earlier will remain for:
- a commutation of an income stream in response to an excess transfer balance determination (10 business days after the end of the month in which the commutation occurred)
- a response to a commutation authority must be reported by the legislated due date, as specified on the notice.
Please note funds/trustees may choose to report transfer balance account events more frequently. This allows individuals to better manage their transfer balance cap and avoid excess transfer balance tax. For example, this would be beneficial when the member rolls over their interest from an SMSF to an APRA fund.
Source: The Australian Tax office – Official Website.
