From 1 July 2017, the Government introduced a ‘general Transfer Balance Cap’ (TBC) of $1.6 million to limit the total amount of capital that superannuation fund members can have in ‘retirement phase’ (where no tax is payable on earnings).

In order to monitor the TBC, the Tax Office has introduced the ‘Superannuation Transfer Balance Account Report’ (TBAR) form, which must be completed by superannuation funds (including SMSFs) to report certain events occurring in respect of members receiving retirement phase pensions (e.g. pension commencements, cessation of pensions or lump sum commutations from pensions).  Normal pension withdrawals are not required to be reported.

Superannuation Funds where any member has a Total Super Balance greater than $1 million are required to report events that occur quarterly.

If the Fund member balances are below $1 million, reporting is required annually and will be done at the same time as we prepare the financial statements and annual report.

As we receive bank data feeds for the majority of client’s SMSFs, these reports can be prepared with the information we have available to us.  However, we may contact you for further information as necessary.

Important:  Please contact us if you are intending on withdrawing more than your minimum pension from your SMSF during the year as this may be a reportable event.