In a recent update, the ATO said it is seeking feedback on moving to a single transfer balance cap events-based reporting framework for all self-managed superannuation funds (SMSFs).
The ATO uses transfer balance account reporting to determine an individual’s personal transfer balance cap, whether they have exceeded their cap and to apply the appropriate consequences if an excess has occurred.
There are currently two different time frames for transfer balance cap events-based reporting, depending on total super balances.
“The ATO is looking to streamline transfer balance cap events-based reporting arrangements so that the same reporting time frame applies to all SMSFs, which will deliver better outcomes and provide more timely transfer balance account reporting,” the ATO said.
All SMSF industry stakeholders are welcome to provide feedback and can contact consultation lead Fiona Athanasiadis, superannuation and employer. The consultation is expected to be completed by December 2021.
The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. It enables the ATO to administer the transfer balance cap. SMSFs generally need to start reporting to the ATO, under the EBR framework, when the first member commences a retirement phase income stream.
Time frames for reporting are determined by the total superannuation balances of an SMSF’s members unless the member has exceeded their personal transfer balance cap and has been sent an excess transfer balance determination, or their fund has been sent to a commutation authority.
SMSFs that have any members with a total superannuation balance of $1 million or more on 30 June the year before the first member starts their first retirement phase income stream, must report events affecting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
When all members of an SMSF have a total superannuation balance of less than $1 million, the SMSF can report this information at the same time as when its SMSF annual return (SAR) is due.
Once the reporting framework is set, SMSF trustees will not be expected to move between annual and quarterly reporting, regardless of fluctuations to any of the members’ balances or changes in fund membership.
The ATO had noted previously it will continue to evaluate the reporting frameworks’ benefits and risks. For example, the $1 million reporting threshold may be re-evaluated in the future, given indexation of the general transfer balance cap.
I understood that BG: 360 does allow for tracking clients status, lodging and lodgment confirmation reports?
https://sf360.zendesk.com/hc/en-au/articles/360018142812-Transfer-Balance-Account-Report-TBAR-
https://sf360.zendesk.com/hc/en-au/articles/360017483032-TBAR-Lodgement-Status-Report
Contact support?
Tee, I think E’s point is that its not easy to do with BGL.
The transfer balance account system needs to be scrapped entirely. It is absolutely ridiculous. If anyone disagrees then they should try and sit down and explain it to an intelligent business person who is not a superannuation expert…..
How about get rid of Transfer Balance Caps all together.
A stupid Frydenberg / ODwyer non consulted construct so the didn’t get accused of taxing Super Pensions.
Had they simple taxed Pension Income @ 15% over a $75k or $100k threshold pa, they would have achieved the same result with out the nightmare of TBCrap, Rollbacks, Death Benefit dramas, etc.
TBCrap i.e. RBL’s mark II.
The Govt couldn’t manage RBLs and also can’t manage TBCrap.
I know…… let’s give TBCrap info only to Accountants that CAN’T give Advice and not give TBCrap info to Advisers that give the Advice.
Only our Govt morons could come up with such a fiasco.
Great job yet again Frydenberg. Please we have to get rid of this disaster.
Yes! Scrap the TBC all together! Capping exempt pension income at 75K would have been so much simplier.
That’s one small step. How about streamlining it further;
1. All individuals having the same TBC instead of this ridiculous pro-rated BS.
2. SMSF administrators/tax agents/advisers who report the TBAR events having access to the members TBA balance so as to provide appropriate pension and compliance advice.
I totally agree. I feel like the second point should be so easy. The trustees of the SMSF and the members are one and the same so there is no privacy issue here. If an entity is registered as an SMSF, the ATO already has the TFN’s of the members linked. How hard is it really to add a tab to the portal showing the members and their TSB & TBC & history.
TBAR should be due at the same time as the tax return for all SMSFs except where amounts are being rolled out to another super fund. That is purely logical. I can guarantee the majority of my client’s that are supposed to be quarterly will be late, because the clients just don’t get the whole quarterly thing. Also there is nowhere on the portal listed whether the SMSF is quarterly or annual. And if they have other external pensions but are not individual clients, then we have no way of easily knowing what their TBC is. Especially for clients that are not computer savvy or don’t have a mygov account.
Another issue is not being able to lodge the TBAR forms directly from the software (we use BGL360). Tracking what has and hasn’t been lodged is extremely difficult.
Great suggestions