A self-managed super fund (SMSF) must report events that affect a member’s transfer balance account to the Australian Taxation Office (ATO) via Transfer Balance Account Reports (TBAR).
Due dates for reporting used to be determined by the total super balances of an SMSF’s members. However, this distinction has been removed.
From 1 July 2023, all SMSFs – regardless of their total balance – must report transfer balance account events to the ATO quarterly. Therefore, you must lodge a TBAR within 28 days after the end of the quarter in which the event occurred. Some circumstances mean these events must be reported sooner.
Common pension events that require a TBAR include:
- Pension commencements
When you start getting money from your super fund for retirement (starting a retirement phase income stream). This includes if you get money from someone else’s super fund after they pass away (death benefit income stream). - Pension commutations
If you take money out as a lump sum, stop your pension account, or decide to move the money to another super fund instead of keeping it in your SMSF. (Note, regular pension drawdowns are not reportable.)
Other events relate to limited recourse borrowing arrangement (LRBA) payments, compliance with a commutation authority from the ATO, and personal injury (structured settlement) contributions.
What do you need to do?
This reporting requirement underscores the critical need for proactive communication between SMSF members and administrators. Whether initiating pension payments or making significant lump sum withdrawals, it is vital to promptly inform your SMSF administrator of these transactions.
By keeping us abreast of any pension events, we can help generate the necessary documents and ensure timely reporting to the ATO. Unfortunately, failure to comply with these reporting deadlines can result in nasty penalties and legal repercussions.
