New Requirements for Self-Managed Super Funds
From 1 July 2018, many Self-Managed Super Funds (SMSFs) have a new reporting obligation, which is separate to their annual return. This reporting has been introduced by the ATO to support the introduction of the ‘Transfer Balance Cap’ and ‘Event-based Reporting Framework’.
What is the Transfer Balance Cap?
This is the limit on the amount a member can have in Retirement (pension) phase, being $1.6m from 1 July 2017. The ATO monitor and regulate events that impact on this cap. The new reporting obligation is known as TBAR – ‘Transfer Balance Account Reporting’.
TBAR Reporting also tracks a member’s Total Superannuation Balance, which includes a member’s Accumulation and Retirement Phase balances within their SMSF.
What events are reportable?
An SMSF must report events that affect a member’s transfer balance, including:
- Income Streams (pensions) that a member was receiving on 30 June 2017 and that continued to be paid after 1 July 2017, and are in retirement phase.
- New retirement phase income streams (pensions).
- Some limited recourse borrowing arrangement payments
- Converting a transition to retirement phase income stream (TRIS) into retirement phase (on retirement).
- Pension Commutations (stopping a pension in certain circumstances, including lump sum payments).
Reporting Timeframes
- 30 June 2017 Retirement phase & Accumulation phase values – due for lodgement by 1 July 2018
- Ongoing Event Reporting where any member’s Total Super Balance exceeds $1mil – due 28 days after the end of the quarter.
- Ongoing Event Reporting where all member’s Total Super Balances are less than $1mil – due on due date of SMSF annual return.
Does this apply to my SMSF?
SiDCOR will lodge TBAR’s on behalf of our clients to cover obligations relating to the year end 30 June 2017.
The greatest impact of the new reporting obligations rests with members with Total Super Balances greater than $1mil, with the requirement for quarterly reporting.
If your Superfund is required to lodge TBAR quarterly, in the first quarter of 2018 we will not only be processing your 2018 financial year fund transactions, but also the current events.
Annual TBAR reporting, where all member’s Total Super Balances are less than $1mil, will be prepared with 2018 Annual accounts.
Any Questions? Need Advice?
If you would like to clarify your reporting obligations, or have any queries, please contact us at SiDCOR.
If you require advice, SiDCOR Wealth can provide financial advice regarding Superannuation.
For information on either please call 1300 743 267.
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*This editorial does not consider your personal circumstances and is general advice only. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.
SiDCOR Wealth Pty Ltd (1256727) ABN 70 081 384 830 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.