Beginning on 1 July 2023, SMSFs will be subject to new requirements for the submission of the Transfer Balance Account Report (TBAR).
With effect from 1 July 2023, the ATO will eliminate the TSB threshold and mandate that all SMSFs submit their reports 28 days following the end of the quarter in which the event occurred.
Any reportable events that happened in 2022–2023 will also be subject to the requirement to report on a quarterly basis. By no later than 28 October 2023, Trustees will be required to file a TBAR to report these events.
It’s important to be aware that the following situations still fall within the more frequent reporting requirement:
- an income stream is commuted in response to an excess transfer balance determination. The trustee must lodge a TBAR within 10 business days after the end of the month in which the commutation occurred; and
- the trustee responds to a commutation authority. The trustee must lodge a TBAR within 60 days of the issue date on the commutation authority.
Transfer Balance Account events, such as when a member rolls over their interest from an SMSF to an APRA fund, may be reported more regularly by SMSF trustees in order to better manage a person’s TBC.
Source: SMSF Association Updates.
Credits:
Sundar
SMSF Team
