The ATO announced today the SMSF event-based reporting requirements that will apply from 1 July 2018.

SMSFs that will have to report TBC events 28 days after end of quarter

This will apply from 1 July 2018 to SMSFs with members with Total Superannuation Balances (TSB) of at least $1 million that have commenced a pension on or after that date.

The TSB will be determined on 30 June in the previous financial year.

How and when these funds may move to annual reporting – see below – is being finalised and we will advise when we have relevant details.

SMSFs that can report TBC events annually by SAR lodgement date

This will apply to all other funds not in the above category.

How and when these funds may have to move to quarterly reporting – see above – is being finalised and we will advise when we have relevant details.

What are TBC reporting events?

The most common events that require reporting are:

  • the values of any retirement phase income streams to which an SMSF member is entitled, including reversionary income streams
  • the value of any commutation of a retirement phase income stream by an SMSF member
  • structured settlement payments an SMSF member receives and contributes to their fund
  • certain limited recourse borrowing loan capital repayments that would cause see accumulation interests to fall and pension interests to increase

Reporting of pensions in place on 30 June 2017 that continue in the 2017/18 financial year

TBC reporting for these pensions is not required until 1 July 2018 however can be reported from 1 October 2017.

Reporting of pensions and other TBC events that are commenced in 2017/18

If a SMSF has one member with a TSB – at 30 June 2017 – of at least $1 million then all TBC events will have to be reported by 28 October 2018.

All other SMSFs will have until SAR lodgement date for the 17/18 financial year in which to submit their TBC reports.

How are TBC events reported?

There are three ways a Transfer Balance Account Report (TBAR) can be lodged with the ATO:

  • submitting a data file via the Business Portal or Tax Agent Portal (available from 1 October 2017)
  • posting or faxing a paper report (available from 1 October 2017)
  • electronic lodgement via ATO Online services (available from 1 January 2018 however we have been informed that this may be delayed until March 2018).