SMSFs slipping behind on TBAR deadlines
With transfer balance account reporting deadlines still being missed in some instances, it’s important clients see their accountant on a more frequent basis.
Speaking in a recent podcast, Verante Financial Planning director Liam Shorte said he is still seeing a number of instances where transfer balance account events have not been reported within the required time frame.
Mr Shorte said it’s important that SMSF trustees are aware of whether their fund needs to report on a quarterly or annual basis.
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.
“It really has come to the time where it’s no longer a once a year [meeting] with your accountant or administrator; you’ve got to the talking to them quarterly and letting them know what you’ve done with the fund,” he said.
“I’ve seen a number of cases this year where people have taken money out in October or November, and they’re only telling their accountant now and the fund is over a $1million.”
With the ATO looking to move to a single reporting time frame for all SMSFs, which is expected to be on a quarterly basis, it will be even more critical for SMSF trustees to get in touch with their accountant more often, said Mr Shorte.
The ATO is still making some final decisions on the new framework for transfer balance account reporting but confirmed it would not make any changes in the coming financial year.
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.
