The ATO has released the Transfer Balance Account Report (TBAR) form for SMSFs, and other entities, to report events to the tax office as part of the changes from the 2016 Budget.
“SMSFs can use the TBAR to report events that affect an individual member’s transfer balance account. While SMSFs will not be required to report anything until 1 July 2018, the option will be available from 1 October 2017,” said the ATO.
The ATO says it plans to have an online TBAR form available from 1 January 2018.
“Reporting on events that affect a member’s transfer balance account is vital to minimising the taxation consequences if the transfer balance cap is exceeded.”
“The TBAR is used to capture information about super amounts moving into and out of retirement phase accounts. This enables us to record and track an individual’s balance for both transfer balance cap and total super balance purposes.”
“All super providers, including self-managed super funds (SMSFs) and life insurance companies, with members in retirement phase will be required to complete and lodge this report to us.”
The ATO says that SMSFs with “relatively straightforward affairs” are likely to only have to report a few events per member over the life of the fund.
The ATO has been consulting on a two year TBAR transition period, suggesting either reporting most events 10 days after the month in which they occur or 28 days after the end of the quarter. This consultation has now closed, with the ATO expecting to provide an update in the near future.