In an online update, the ATO stated that SMSF trustees are required to lodge a TBAR by 28 January if a TBAR event occurred in their fund between 1 October and 31 December 2020 and any member of the SMSF has a total super balance greater than $1 million.
“Different reporting deadlines will apply if any of your members have exceeded their transfer balance cap, and we’ve sent them an excess transfer balance determination or a commutation authority,” the ATO said.
“If no TBA event occurred, you do not need to report.”
It reminded trustees that the TBA is a record of all the amounts transferred that count towards their personal transfer balance cap (TBC).
“The most common events you need to report are when a member starts a retirement income stream or commutes that income stream into a lump sum, including when they commute that pension before rolling it over to a new fund,” it explained.
“There is a lifetime limit on the total amount of super that can be transferred into the retirement phase income streams, including most pensions and annuities. This is called the TBC.”
It also stressed that the TBAR is separate from the SMSF annual return (SAR).
“This is one of your trustee reporting obligations and it enables us to record and track an individual’s transfer balance,” the ATO said.
“This is an important aspect of your fund administration because there can be negative tax consequences if a member exceeds their TBC.”
