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From 1 July 2018, as a result of the 2017 super reforms, the trustee(s) of a self-managed super fund must lodge with the ATO a Transfer Balance Account Report (TBAR) where a transfer balance account event occurs in respect of a member. The ATO uses this information to record and track a member's transfer balance account and total superannuation balance.Melissa Ramov, Maddocks Lawyers
A member's 'transfer balance account' must be reported in a range of circumstances, including but not limited to the following:
Although the SMSF trustee is not required to lodge a TBAR until after 1 July 2018, the trustee must ensure that events affecting a member's transfer balance account - which occur between 1 July 2017 and 30 June 2018 - are also reported in the TBAR at the time the SMSF's first TBAR is due.
To lodge a TBAR, a separate form must be lodged in respect of each member and must be in the form prescribed by the ATO. An online form is available to SMSF trustees on the ATO's website here.
Generally, the deadline by which the TBAR must be lodged depends on the 'total superannuation balance' of a fund's members:
If a commutation is effected as the result of:
An SMSF may report events earlier than the above timeframes and the ATO encourages this in order to avoid the issue of an excess transfer balance determination where the member would otherwise be on record as having exceeded their transfer balance cap.
Where the SMSF trustee fails to report the transfer balance account event within the required timeframe, a member's transfer balance account may be affected and the member penalised and subject to compliance action.
Cleardocs' annual review of its SMSF master documents now includes references to the TBAR reporting requirements in the SMSF Product Disclosure Statement and the SMSF Pension Commutation Product. The latest documents will be released as part of Cleardocs' 2018 EOFY review.
For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of the Commercial team.
You can read earlier ClearLaw articles on a range of topics, such as:
 The ‘transfer balance account’ is a combined account which records the member’s balances across all super funds which fund or are to fund pensions to a member. The transfer balance is constituted by the total amount of assets which have been transferred into all such super accounts.
 The ‘total superannuation balance’ is the combined value of the member’s account balances which are held in accumulation accounts and pension accounts.
Andrew is a Partner in the Maddocks Tax & Revenue team.
Andrew provides advice on:
His advice covers both direct and indirect tax considerations.
Prior to joining Maddocks, Andrew was a tax consultant at a Big 4 Chartered Accounting Firm.
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For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.