From 1 July 2018, the trustee(s) of a self-managed super fund must lodge with the ATO a Transfer Balance Account Report (TBAR) as a result of the 2017 super reforms. The TBAR is used to advise the ATO when a transfer balance account event occurs and allows them to adjust your member’s transfer balance account so they can correctly apply the transfer balance cap provisions.
A member's transfer balance account must be reported in a range of circumstances, including the following:
super income streams in existence just before 1 July 2017 that
are continued to be paid on or after 1 July 2017
were in retirement phase on or after 1 July 2017
any of the following events that occur on or after 1 July 2017
super income streams that have commenced in retirement phase
limited recourse borrowing arrangement payments that affect the value of an interest supporting a retirement phase income stream
member commutations from a retirement phase income stream
compliance with a commutation authority issued by the Commissioner
personal injury (structured settlement) contributions
super income streams that stop being in the retirement phase, for example because the trustee failed to meet the minimum pension payment standards for an income stream.
If the reporting event is in response to a commutation authority we issued, you must lodge the report within 60 days of the date of issue on your commutation authority.
Generally, the deadline by which the TBAR must be lodged depends on the 'total superannuation balance' of a fund's members:
if all members of the SMSF have a total superannuation balance of less than $1million – the fund must report the event no later than when its annual return is due;
if any member has a total superannuation balance of $1million or more – the fund must report the event within 28 days after the end of the quarter in which the event occurs.
If the reporting event is in response to a commutation authority issued by the ATO, you must lodge the report within 60 days of the date of issue on your commutation authority.
If you do not lodge the report by the required date you may be subject to compliance action and penalties.