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ATO confirms TBC info availability

personal transfer balance cap

The date when individuals can begin to access their personal transfer balance cap information after the application of indexation has been confirmed.

The ATO has announced when individuals will be able to access information about their personal transfer balance cap (TBC) once indexation to the superannuation thresholds has been applied on 1 July.

“Due to the timing of APRA (Australian Prudential Regulation Authority) fund reporting, we won’t be calculating and displaying members’ personal transfer balance cap until 5 July 2021. This is to minimise confusion for individuals,” the regulator said in an online update.

The ATO also confirmed the TBC information it will initially release is subject to change if more up-to-date information is lodged subsequent to this nominated date.

“After 5 July 2021, the member’s personal transfer balance cap may change if we receive information that changes the highest-ever balance of their transfer balance account before 1 July 2021. This could occur if an SMSF hasn’t completed its reporting of pre-1 July 2021 transfer balance account events to us,” it said.

It clarified it will not be processing any fund details reported between 1 July and 5 July, meaning excess TBC determination and commutation authorities will not be either issued or revoked over these four days.

Despite this development, the ATO is still encouraging trustees to send relevant information through to it during this short period.

Individuals will be able to access their personal TBC information via the ATO online facility and their tax agents will have a similar avenue to the data through the regulator’s online services for agents.

Further, the ATO revealed it has updated its valuation guidelines and event reporting web content with the purpose of explaining the significance of timing with regard to reporting and how it will calculate a person’s individual TBC once the new financial year commences, addressing myths and misconceptions, and facilitating an extension of the circumstances where SMSFs can use the reasonable estimate method to support their transfer balance account reporting.

It was confirmed in January that indexation of the general TBC would occur on 1 July.

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