Due to recent legislative changes it is a requirement by the ATO that all superannuation funds report the pension balance as at 30 June 2017 by the 1 July 2018. This is reported to the ATO using the Super transfer balance account report (TBAR).
The TBAR’s purpose is to capture all information about superannuation amounts moving in and out of retirement phase accounts. This will assist the ATO to keep track and record member balances for both the transfer balance cap and total super balance.
Reportable events include the following:
- Superannuation income streams in existence as at the 30 June 2017.
- New retirement phase income streams.
- Some limited recourse borrowing arrangement payments.
- Member commutations.
- Compliance with a commutation authority issued by the Commissioner.
- Personal injury (structured settlement) contributions.
- Superannuation income streams that stop being in retirement phase.
There will be ongoing additional reporting obligations for superannuation funds. From the 1 July 2018 transfer balance account events must be reported.
- For funds where any member has more than $1 million in total super balance, the fund has quarterly TBAR reporting obligations. The TBAR must be lodged with the ATO within 28 days after the end of the quarter of the event.
- For funds where all members each have less than $1 million in total super balance, the fund must report by the time the fund’s annual return is lodged for the relevant year.
We recommend that you contact us for a quarterly update if you are in or near pension phase.
This article appeared in our June 2018 newsletter. Author: Renee Larsen