The transfer balance account report (TBAR) for some self-managed super funds is due 28 April 2021
The TBAR is separate from the SMSF annual return (SAR). This is one of your trustee reporting obligations.
Your SMSF is required to lodge a TBAR by 28 April if:
- a transfer balance account (TBA) event occurred in your member’s SMSF between 1 January and 31 March 2021, and
- any member of your SMSF has a total super balance greater than $1 million.
If a TBA event occurred but none of your SMSF members has a total super balance over $1 million, you do not need to report by this date.
You do not need to lodge a report if no TBA event occurred.
Other reporting deadlines
Different reporting deadlines apply in the following circumstances:
- Any of your members exceeded their transfer balance cap (TBC)
- If the ATO issued your SMSF a determination or commutation authority which relies on reporting which is incorrect or incomplete, you must correct or complete the reporting as soon as possible.
Lodging online or electronically is the quickest and easiest way to complete your TBAR.
How TBA reporting affects SMSF members
A member’s TBA is a record of all the credits and debits which count towards their personal TBC.
The balance of the member’s transfer balance account at the end of a day is used to determine if:
- they have exceeded their personal TBC, and
- they will be entitled to proportional indexation of their personal TBC on 1 July 2021.
The most common events you need to report are when a member:
- starts a retirement phase income stream, or
- commutes that income stream into a lump sum, including when they commute that pension before rolling it over to a new fund.
Delays in reporting TBA events to the ATO may mean:
- a member is in excess of their personal TBC for longer and will pay more excess transfer balance tax, and
- the ATO will not be able to correctly calculate your member’s personal TBC from 1 July 2021.
At Intuitive Super our goal is to ensure that your self-managed superannuation is working to achieve your goals. Call our award-winning team on 1300 856 064 or visit https://www.carrickaland.com.au/smsf/.