ATO (Transfer Balance Account Report) TBAR Reporting Requirements

Do you have over $1.6 million per member in your superfund and are over 65? If so then there are new reporting requirements to the ATO for certain events that happen during the year.

As at 1 July 2017 the ATO legislated the new $1.6 million super cap to superfunds that have money in pension mode. If this was you, then you were required to advise the ATO by the 30th of June 2018 how much money you had in pension mode in your superfund (don’t worry, we did this for you).

If any of the following events occur on or after 1 July 2017 then you need to lodge a TBAR (Transfer Balance Account Report) with the ATO

  • super income streams that have started in retirement phase, including reversionary income streams
  • limited recourse borrowing arrangement (LRBA) payments when
  • the LRBA was entered into on or after 1 July 2017 (or an LRBA entered into before 1 July 2017 was refinanced on or after 1 July 2017), and
  • the payments result in an increased in the value of the members superannuation interest supporting their retirement phase income stream, and
  • the members interest in an SMSF or other complying superannuation fund with less than 5 members
  • member commutations, including commutations that occur before an income stream is ‘rolled over’ to another fund and commutations requested by a member because we have issued them with an excess transfer balance determination
  • compliance with a commutation authority issued by the Commissioner to the fund, including commutations made in response to the commutation authority we have issued to the fund
  • personal injury (structured settlement) contributions that occurred post 1 July 2017
  • super income streams that stop being in the retirement phase.

If the total amount of funds in pension account in your fund are under $1 million then these TBAR reports will be lodged with your annual return, as long as you lodge your annual return by the due date. However, if the total funds exceeded $1 million, then these TBAR reports need to be lodged 28 days after the quarter in which they occurred. For example, if you started a pension on 1 September then the TBAR report needs to be lodged by 28 October.

If you had more than $1.6 million in pension mode, then you had until 31 December 2018 to commute the amount over the cap back to accumulation mode. If you didn’t tell the ATO you commuted this or didn’t commute this then you will receive a transfer balance determination from the ATO advising you how much you need to commute out of your pension account. This amount will generally be the amount you are over the cap plus the tax you should have paid on the money if it was in accumulation mode.

If you receive one of these determinations and wish to lodge a TBAR report with the ATO to advise them you have commuted the funds or to advise the amount they have on record is wrong, this is something we can do for you! If you need this done, please don’t hesitate to give us a call!


Author: Sheridan Wilson