Self Managed Super Fund Trustees – careful of the TBAR!

By Steve Marsten

Just when we thought the SMSF red tape was clearing up after the budget announcements - the ATO reminds us that it requires SMSF trustees to use the superannuation transfer balance account report (TBAR) to advise it when a transfer balance account event occurs. It uses this information to adjust a superfund member’s transfer balance account so it can correctly apply the transfer balance cap provisions. Don’t you just love helping the ATO with THEIR paperwork?

SMSF trustees are required to report the following events:

• super income streams such as pensions - in existence just before 1 July 2017
• any of the following events that occur on or after 1 July 2017
• super income streams that have commenced in retirement phase;
• Limited recourse borrowing arrangement payments – do you have a loan in your SMSF?
• member removals or changes;
• compliance with a commutation authority issued by the Commissioner;
• personal injury (structured settlement) contributions;
• super income streams such as pensions, that stop being in the retirement phase, for example because the trustee failed to meet the minimum pension payment standards for an income stream.

The ATO will now only require the member’s 30 June 2017 accumulation phase value (APV) to be reported on the fund’s transfer balance account report (TBAR) when the member is also in receipt of a capped defined benefit pension or a flexi pension from the fund (more below).While the TBAR for pre-existing pension phase pensions as at 30 June 2017 is still due by 1 July 2018, the ATO will not be using the APV information to calculate a member’s total super balance until mid-September 2018. This date is likely to sneak up on many Trustees.

This is the reason accumulation phase value (APV) reporting for 30 June 2017 is not due until 8 September 2018. So, for affected members, if their SMSF has already lodged a TBAR to report their pension value, they need to lodge a further TBAR (by 8 September 2018) to report their APV as at 30 June 2017.

Clearly some key dates are coming up fast and Trustees – not their accountants, will be held responsible for such lodgements. If you need further information feel free to contact the team at Sothertons for more information on TBAR and the key dates for your superfund. Ring us on 4972 1300.