Hopefully by now anyone drawing a pension from their super fund has heard of a transfer balance account and TBAR reporting. But do you know what your lodgement requirements are and when your reporting deadline is to lodge these reports?

Your accountants should be lodging your TBAR reports for you but it is very important that you understand when they need to be lodged to ensure you are communicating any relevant events that may impact your transfer balance account.

But first let’s remind ourselves what exactly a TBAR is and why the ATO wants us to lodge them.

If you or a member in your SMSF has a balance over $1m and are currently receiving an income stream you will be required to report events to the ATO that impact your transfer balance account quarterly from 1 July 2018. This is called transfer balance account reporting (TBAR). The ATO requires this report so they can track how much you have in retirement phase and confirm if you have exceeded the balance of $1.6m.

The ATO has more information in the following link: Click here for more information from the ATO.

Lodgement Deadline Approaching – October 28th 2018

All super funds with a member balance over $1m will be caught under the quarterly TBAR reporting requirements. This means any event must be reported 28 days after the end of the quarter in which the transaction occurred. If all member balances are under $1m you can report the events when you lodge your tax return for the financial year.

What events impact my transfer balance account and need to be reported?

Any transaction that changes the balance of your transfer balance account must be reported. These include the following:

  • Lump sum payments and other pension commutations
  • Pension commencements
  • Ceasing a pension
  • Commence receiving a reversionary pension from a deceased spouse

How can you assist to report these events?

Regular communication with your advisor or accountant is vital with TBAR. Notifying us of the events that you believe may impact your transfer balance account will allow us to prepare and lodge the online or paper form before the deadline.

So get in touch with us here if one of these events occurs, so you can stay on top of these new reporting requirements.

 

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.