The ATO announced in late June that from 1 July 2023, transfer balance account reporting (TBAR) for SMSFs will be streamlined, with all SMSFs being required to report an event 28 days after the end of the quarter in which an event occurred.
In an online update, the ATO stated that currently some SMSFs are able to lodge their TBAR with the SMSF annual return when all members have a total superannuation balance of less than $1 million.
“From 1 July 2023, all SMSFs with members in retirement phase must report transfer balance account events by lodging a TBAR quarterly,” said the Tax Office.
“This change has been made to remove complexity for SMSFs around when they need to lodge. It will also provide members with more timely and accurate information which will allow them to better manage their transfer balance cap and avoid excess transfer balance tax.”
The ATO reminded SMSFs who are currently annual reporters that they will need to report all transfer balance account events that occurred in the 2023 income year by 28 October 2023.
“You can start transitioning over to lodging quarterly now, which will save you time at the end of the income year,” the ATO stated.
The ATO said SMSFs should also familiarise themselves with the reporting obligations for different transfer balance events that can occur.
