The ATO has reminded SMSFs that any events in recent months that affect a member’s transfer balance cap (TBC) must be reported in the quarterly transfer balance account report (TBAR) due on 28 July and after this date all TBARs will need to be lodged quarterly.
In an online update, the regulator stated a TBAR must be lodged if there were any events inside the SMSF that count towards a member’s TBC between 1 April and 30 June 2023, and if any member of the SMSF had a total super balance greater than $1 million.
“You are not required to lodge a TBAR if no events that count towards your member’s TBC occurred during this timeframe,” it stated.
In addition, the regulator used the update to remind SMSF trustees and members that the shift to quarterly reporting for all funds would commence with the new financial year.
As such, any funds that reported annually will have a one-off October deadline to report all events that occurred in the previous income year.
“From 1 July 2023, you will no longer be able to lodge annually and all SMSFs with members in retirement phase will be required to report events that count towards your member’s TBC by lodging a TBAR quarterly,” the ATO said.
“If you are currently reporting annually, you will need to report all events that count towards your member’s TBC and occurred in the 2023 income year by 28 October 2023.”
The shift to quarterly reporting will not have a longer transition period after it was first flagged by the ATO in the middle of 2022 when it stated it would remove the total super balance threshold and require all SMSFs to lodge a TBAR 28 days after the end of the quarter in which the event has occurred.
At the time of the announcement it was noted the change would compress reporting events for some funds in the second half of 2023, but SMSF trustees were also able to lodge a TBAR at any time, which could assist in the management of a member’s TBC and the avoidance of excess transfer balance tax.