Transfer balance account reports changes

In the latter part of 2022, the Australian Taxation Office (ATO) indicated its intent to reassess the existing deadlines for submitting Transfer Balance Account Reports (TBAR) with the aim of transitioning to a unified reporting framework. Subsequently, the ATO has finalised its decision.

On the 1 July 2023, the TBAR reporting process for all Self-Managed Superannuation Funds (SMSFs) was streamlined. It is now mandatory for all SMSFs to report transfer balance account events no later than 28 days following the conclusion of the quarter in which the event transpired.

What this means, as of 1 July 2023:

• The total super balance of an individual will no longer be a determining factor for the reporting deadline.
• The option for an "annual reporter" will cease to exist.

Please note that these changes only effect members that have commenced or are about to commence an Account Based Pension in their fund. Members that are 60 years or greater. 

As a result of these changes, members will need to tell us if the following events occur during each quarter:

• If you plan on starting a pension, or you would like to commute an existing accumulation account to a pension account.
• If you plan on ceasing a pension.
• If you have taken any lump sum (large amounts) from your fund.

If you have deposited any large amounts into your fund. For the majority of SMSFs, members typically encounter only one or two TBAR events throughout their lifetime. It's important to note that in some cases, an SMSF may need to submit a TBAR even earlier than the designated 28 days after the quarter's end.

If you would like to discuss this further, contact your superannuation team member to make an appointment.

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.