11,000 SMSFs have lodged TBAR

The ATO has revealed that 11,000 SMSFs have lodged a transfer balance account report (TBAR), despite event-based reporting for SMSFs officially due to start on 1 July.

During the tax office’s SMSF update May webinar today, ATO superannuation director Mary Simmons said: “As at the end of April we have seen only approximately 11,000 SMSFs adopt events-based reporting and lodge a TBAR form, with less than eight weeks before events-based reporting for SMSFs is a reality.”

Simmons reiterated the frequency of events-based reporting under TBAR for SMSFs is determined by members’ total super balance with a $1 million threshold just before the first member starts an income stream.

SMSFs will not move between annual and quarterly reporting, she added.

She also reminded SMSFs of specific considerations, including scenarios for early reporting.

“Transfer balance cap events which must be reported sooner include pre-existing voluntary member commutations relating to an excess transfer balance determination and responses to commutation authorities,” she said.

“The ATO will issue an excess transfer balance determination where there’s an excess in the transfer balance cap, with members liable for excess transfer balance tax of 15 per cent or 30 per cent, which will need to be paid by the member and not the fund.

“It’s fair to say SMSFs are likely to continue to see more reform or at least outcomes of reviews involving the super industry.

“Although most of these are still unknown, we plan to continue our engagement and communication with industry to support SMSF professionals and trustees.”

The TBAR regime requires SMSFs to report applicable events from 1 July, however, in January ATO SMSF segment assistant commissioner Kasey Macfarlane told selfmanagedsuper SMSFs had already begun using TBAR to inform the tax office of events affecting their transfer balance cap and total super balance.

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