Late last year new reporting obligations for Self-Managed Super Funds (SMSF) were released taking effect from 1 July 2018. These new rules now require SMSF’s to report certain events to the ATO that affect a member’s transfer balance account on the Transfer Balance Account Report (TBAR).
What is a transfer balance account?
A transfer balance account is the method used to track transactions and amounts in retirement phase for a member of a superannuation fund. The balance of the account determines whether a member has exceeded the transfer balance cap which is currently $1.6 million. This has implications for the taxation treatment of the member’s account balance.
When do events need to be reported?
The TBAR is a separate form to the SMSF annual tax return and the due date for lodgement depends on whether the Fund has a member with a total superannuation balance (accumulation and retirement phase) that exceeds a threshold of $1 million. If so, there is a quarterly reporting obligation, if not, the TBAR is an annual obligation.
The main triggers for TBAR reporting is having an existing pension or income stream, commencing a new pension or income stream or commuting an income stream.
For guidance on how these and other changes affect your superannuation entitlements, please contact our office via email or phone (07) 3446 5906 to arrange an appointment.
For further information on SMSF reporting please click here.
At Transcend Accounting we excel in helping our clients gain the most from their Self-Managed Super Funds, whilst still maintaining compliance. We invite you to contact us on (07) 3446 5906 or via email for an obligation free discussion or visit our SMSF services page for more information.
Transcend Accounting Pty Ltd holds a Limited Australian Financial Services Licence #488766 with ASIC.
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