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Changes to TBAR reporting requirements for SMSFs

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.

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Synectic

Synectic is a Chartered Accounting and Financial Services firm that brings together the skills of accountants, business advisers, financial advisers, self-managed superannuation specialists, and auditors. Our specialists work together, with a complete understanding of your objectives to offer solutions that will help you achieve your goals. We offer services Tasmania-wide and beyond from our offices in Devonport, Hobart and Launceston.
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About Synectic Wealth Synectic

Wealth Pty Ltd is the financial services division of the Synectic group of accountants, auditors, business advisers, self-managed super fund (SMSF) specialists, and financial advisers. We are based in Devonport, Launceston and Hobart and provide services across Tasmania.

 

Synectic Wealth Pty Ltd ABN 24 615 317 194

Corporate Authorised Representative No. 1250871 of Alliance Wealth Pty Ltd AFSL 449221 | ABN 93 161 647 007 | Financial Services Guide

Information on this webpage has been prepared on a general advice basis only. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision.

Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

Self-managed superannuation funds are not cost competitive for lower balance accounts and are not appropriate for all investors due to the time, cost and responsibility involved in managing an SMSF. For these reasons, it is imperative that you seek advice from your financial adviser before making any investment decisions.

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