ATO announces TBAR frequency requirement

A hand holds a stopwatch.

The ATO has made its decision for transfer balance account reporting for SMSFs.

The ATO has today handed down the outcome of its position paper, announcing that events-based reporting for SMSFs under its transfer balance account report (TBAR) regime will be limited to those SMSFs with members that have total super account balances of $1 million or more.

This means that SMSFs with total super account balances of less than $1 million can choose to report events which impact its members’ transfer balances at the same time the fund lodges its annual return.

“As a result of this approach it is estimated that up to 85 per cent of the SMSF population will not be required to undertake any additional reporting outside of the current annual reporting time frames for the unforeseeable future,” ATO deputy commissioner James O’Halloran said.

For SMSFs that have members with total super account balances of $1 million or more, events impacting members’ transfer balances will need to be reported within 28 days after the end of the quarter in which the event occurs.

The ATO said as part of its normal practice, it will continue to evaluate the benefits and risks arising from this change to SMSF events-based reporting and should further change be considered to this arrangement, or a change to the expectations on the broader SMSF sector, it will be the subject of community consultation.

O’Halloran stressed the importance for all SMSF trustees and members to self-monitor and track events impacting upon their transfer balances on an ongoing basis, as envisaged by the transfer cap balance legislation.

The regulator will continue to engage and work closely with the SMSF sector over the coming weeks and months to support the sector in transitioning to the events-based reporting arrangements announced today.

In August, the regulator released its position paper requesting industry feedback on two possible TBAR scenarios: monthly or quarterly reporting.

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