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SMSF Event Based Reporting

By Tyler J. Wise|December 08th, 2017|Blog|
All superannuation providers, including SMSFs, with members in retirement / pension phase are required to comply with events-based reporting requirements in connection with the transfer balance cap (TBC) regime and total superannuation balance regime, both of which commenced from 1 July 2017.
 
Events affecting an individual’s transfer balance account are discussed in our blog piece here - it is quite a ‘technical’ piece so if you have queries do just reach out.
 
The approved form that is required to be submitted for the events-based reporting in relation to the TBC is the Transfer Balance Account Report (TBAR), and the events that are required 
  • superannuation income streams in existence just before 1 July 2017
  • any of the following events that occur on or after 1 July 2017:
 
  – commencements of new superannuation income streams (pensions) in the retirement phase
  – limited recourse borrowing arrangement payments
  – income stream commutations by members (voluntary)
  – income stream commutations by members in compliance with a commutation authority issued by the ATO
  – personal injury (structured settlement) contributions
  – superannuation income streams that stop being in retirement phase.
 
SMSFs are not required to commence reporting using the TBAR until 1 July 2018 but TBAR lodgment by SMSFs can also commence from 1 October 2017 for SMSFs that choose to lodge earlier (I cannot imagine many choosing to do this given the requirement to access and calculate data in real time). 
 
In a recent and positive move though, the ATO announced that implementation of SMSF event-based reporting from 1 July 2018 will be limited to those SMSFs with members with total superannuation account balances of $1m or more (not all members as previously proposed). This is anticipated to remove approximately 85% of SMSF’r from catchment.
 
Reporting requirements are for events that impacts a member’s transfer balance cap, such as the commencement or commutation of a pension.
 
Some events that are not required to be reported are:
  • pension payments
  • investment earnings and losses
  • when an income stream is closed because the interest has been exhausted.
 
The submitting and lodgement of the reporting obligations to the ATO can occur, digitally via the ATO Business or Tax Agent Portal; posting or faxing a paper report; or via ELS.
 
As this is a somewhat dynamic landscape and has already altered from it’s initial impact, our suggestions to anyone who this may affect is to monitor the situation closely, and speak with your registered tax agent.
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