SMSF TBAR Reporting - Are you aware of your reporting obligations?

With the next SMSF TBAR reporting obligation fast approaching, it’s important you get in touch with your Altus Adviser now if there has been a reporting event.

What are the reporting obligations?

The method of reporting is via a separate form to your SMSF annual return. Ongoing, the reporting obligation requires you to report each and every event that impacts your transfer balance cap. Depending upon your (or the individual’s) superannuation balance, this obligation may be annual or quarterly.

What events are required to be reported to the ATO?

SMSFs need to report events that affect member’s transfer balance such as:

• New pension commencements from 1 July 2017;
• Commutations from Pension Accounts;
• Members turning 65 that have a Transition to Retirement Pension;
• Principal repayments on limited recourse borrowing arrangements (LRBA) commencing after 1 July 2017, where there are accumulation and pensions in place.

How to report the TBAR?

Trustees are required to report any transfer balance cap events on an ongoing basis that occurred from 1 July 2017. This report is due to be lodged either quarterly, with the first due date 28 October 2018, or annually.

From 1 July 2018, if you have a member whose balance exceeds $1 million, you will be required to report these events within 28 days following the end of the quarter of which they occurred.

If no members of the fund have a balance exceeding $1 million, this obligation will be an annual obligation in line with the due date of the fund’s tax return.

Contact us now if there has been a reporting event

If you are aware your fund had a reporting event during the 2018 financial year or in the current 2019 financial year, contact us now. The reporting deadlines are fast approaching. Depending on the type of event, we may need to complete the 2018 financial statements and reconcile the fund to date in the 2019 financial year.  We are here to help and support you through these additional obligations.

If you have any questions, please get in touch with your Altus Adviser or our about what these obligations mean to you.