These events must be reported even if the member’s total superannuation balance is less than $1 million.
Funds must report and lodge within 28 days after the end of the quarter in which the event occurs, however, they are not required to lodge if no TBA event took place.
If an SMSF is currently lodging the TBAR annually at the same time as their SMSF annual return, they will need to report all events that occurred in the 2023 income year by 28 October 2023.
The regulator said they will then need to report any transfer balance events quarterly.
Funds can no longer report annually at the same time as their SMSF annual return.
According to the ATO, trustees should always refer to event-based reporting for SMSFs and the TBAR instructions when preparing their TBAR.
The easiest way to lodge is through online services for business, but a registered tax agent can also lodge through their online services tool.
If an SMSF does not lodge a TBAR by the required date the member’s transfer balance account may be affected. This could mean that the member is obliged to commute any amount more than their cap and pay more in excess transfer balance tax.
Additionally, if an SMSF had assets, such as super contributions or other investments as of 30 June 2023, the ATO is reminding trustees they need to lodge an SMSF annual return (SAR) for the 2022–23 financial year.
The lodgment due date will depend on individual circumstances. For those with a new SMSF and who are preparing the SAR themselves, or have previously lodged a SAR late, the due date is 31 October 2023.
When preparing a SAR, the regulator said it best to refer to the 2023 SAR instructions on its website.
If assistance is required with lodging a SAR, trustees should contact a registered tax professional as soon as possible.
Trustees will also need to update their records, confirming they are the authorised representative for the fund.
If a fund does not have any assets, trustees need to either make a return not necessary request or cancel the fund’s registration if they no longer wish to have an SMSF.
Failing to lodge your SAR on time can result in the compliance status of your SMSF on Super Fund Lookup being changed to ‘regulation details removed’ which may result in rollovers and employer contributions not being made to the fund.
