Compliance, Regulation

TBAR change to compress reporting dates

TBAR annually reported

The shift to quarterly TBAR will compress some annual reporting dates into a single day not related to a fund’s annual return lodgement.

The shift to a quarterly transfer balance account report (TBAR) regime will move a number of annually reported events to a single date in late October and not an SMSF’s annual return date, according to a technical specialist.

Smarter SMSF chief executive Aaron Dunn said the introduction of quarterly TBAR timeframe for all SMSFs from 1 July 2023 will mean any events up to that date that were usually reported annually will need to be reported 28 days after the end of the September quarter instead.

“The new laws start from 1 July 2023, which means the latest date that we will have to report events for annual reporters in the current financial year is not the due date of the SMSF return, which could be in October next year or February or May 2024, but rather by 28 October 2023,” Dunn said in a webinar today.

He pointed out a fund with a TBA event taking place today or in February or March next year would not have until May 2024 at the latest to report, but would need to do so by 28 October 2023, as would be the case with any event taking place in the three months after 1 July 2023.

“If the current quarterly TBA reporting operates for a fund, there is no change to that process,” he said.

“For those that are annual reporters, it is critically important that you make your clients aware of that change and you are also aware of the reporting deadline that is now imposed by events from 1 July this year right through until 30 September next year.”

He added the change would require being aware of the timing of when pensions are started and commutations are occurring and ensuring a practitioner’s business system also moved into a quarterly reporting cycle.

“Talking to a number of firms, they have moved all of their clients into a standard quarterly reporting timeframe so they will not see any sort of significant change, but for those that have a fragmented approach to dealing with reporting, be very conscious of getting that done in a timely fashion,” he said.

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