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Events-based reporting for SMSFs

Posted by Northadvisory on August 23, 2017

From 1 July 2017, all superannuation funds, including SMSFs, will be required to report Transfer Balance Cap (TBC) credits & debits to the Australian Taxation Office (ATO) on an ‘events’ basis.

All superannuation fund providers, including SMSFs, will report TBC events via the Transfer Balance Account Report (TBAR). This will be done on an ATO approved form. The form will be lodged electronically or you will be able to post it.

The ATO has proposed that all superannuation providers, including SMSFs, will be required to report events occurring in relation to their member’s Transfer Balance Account 10 business days after the end of the month in which the relevant event occurs. This hasn’t been legislated yet and its open for discussion. At present the ATO has received negative feedback on this proposal.

There are some specific exclusions that will apply to the above timeframe;

• SMSFs – Commencement value of a member’s super income stream. SMSFs to report the commencement value of an income stream (new pension), 28 days after the end of the quarter in which the relevant income stream is commenced.
• SMSFs – Limited Recourse Borrowing Arrangements impacted by the 2017 budget measures
• All Funds – where needing to comply with a commutation authority the SMSF must notify the ATO within 60 days of the date of issue of the Commutation Authority.

The ATO has advised that TBAR reporting functionality will be available from the 1st October 2017. A transitional period will be allowed for SMSFs so that they will generally not be required to commence TBAR reporting until 1 July 2018 but functionality for TBAR reporting will be available for those SMSFs that wish to commence TBAR reporting before 1 July 2018. We recommend that you commence TBAR reporting right away as SMSFs will need to track all relevant transfer balance account events leading up to the date of lodgement of their first TBAR.

We have the resources to manage the new TBAR requirement efficiently and effectively.

If you would like to discuss the new TBAR requirement please feel free to call Cayle Petritsch or Martin van der Saag on 02 9984 7774.

Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au

Martin van der Saag
Director
T: 02 9984 7774
E: martinv@nac.com.au