TBAR lodgement errors causing processing delays, says ATO
Some common mistakes with transfer balance account reporting, including failure to provide the fund’s ABN or list the event type, are leading to delays and additional processing time, warns the ATO.
ATO director Helen Morgan said that one of the common issues with the spreadsheet and paper form solutions for transfer balance account reporting has been funds failing to provide the proper ABN for the fund.
“When you do not provide the correct ABN, the form will be suspended for manual review and we may need to contact you to resolve the matter,” Ms Morgan said in an ATO webinar.
Another issue with the spreadsheet and paper TBAR lodgements, she said, is failing to report the event type for every event that is being reported when an SMSF practitioner is reporting multiple events.
“This will also cause the form to suspend for manual review,” she warned.
Ms Morgan said that, fortunately, using the online TBAR form will eliminate both these issues and the associated workflow.
She also cautioned that some practitioners are reporting events that they shouldn’t, such as those for APRA funds.
“You cannot report or amend information reported to us by an APRA fund. The online form [only allows you] to report an event to us for an SMSF, so using the online form will remove the possibility of this happening,” she said.
Ms Morgan also pointed out that the ATO’s system for transfer balance account reporting treats each new report as a new event and that one event does not override another.
“Therefore, the important thing you need to remember about correcting transfer balance cap events previously reported is to cancel the incorrect one first and then report the correct information if necessary,” she explained.
Once you have cancelled an event, it will no longer display in the member’s transfer balance account details online, she said.
“When reporting a cancellation, it’s critical that the TBAR you are lodging is clearly a cancellation of information previously reported to us. The information provided in the cancellation TBAR must exactly match the information previously reported in the one you want to cancel,” she added.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
