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  • Reporting and administrative obligations for the Transfer balance cap

    APRA-regulated super funds and life insurance companies have new reporting obligations from 1 July 2017 with the start of the Transfer balance cap measure and the introduction of an events-based reporting framework.

    The Transfer balance account report (TBAR) is used to capture information about super amounts moving into and out of retirement phase accounts for both transfer balance cap and total super balance purposes.

    APRA-regulated fund and life insurance company reporting

    APRA-regulated super funds need to capture data for the TBAR from 1 July 2017 with the first TBAR required to be lodged by 14 December 2017 for each member.

    Once you have started reporting, you need to lodge a TBAR within 10 business days after the end of the month in which a transfer balance account event occurred.

    For example, if you need to report an income stream that started on 2 January 2018, you must lodge this report to us by 14 February 2018.

    We may issue a commutation authority to super providers where a member has exceeded their transfer balance cap.

    Providers must action the commutation authority and report to us using the TBAR within 60 days of the notice issue date.

    See also:

    Consequences of late reporting

    Once your reporting has started, lodge the TBAR with us as soon as practicable after the event has occurred to ensure your member’s transfer balance account is updated.

    If you do not lodge the report by the required date your member’s transfer balance account will be adversely affected and they may be penalised. You may also be subject to compliance action and penalties.

    Some exclusions from TBAR reporting

    Only certain events that affect a member's transfer balance account or total super balance need to be reported in a TBAR.

    Events that do not need to be reported include:

    • pension payments
    • investment earnings and losses
    • when an income stream is closed because the interest has been exhausted.

    Information that individuals report to us directly using a Transfer balance event notification form (NAT 74919). Typically, this is when the following events occur:

    • family law payment split
    • debit event from fraud, dishonesty, or bankruptcy
    • structured settlement contributions made before 1 July 2007.

    Reporting channels

    There will be three channels for you to report information to us:

    1. submitting a data file through the Business Portal or Tax Agent Portal, known as bulk data exchange
    2. mailing a paper report
    3. lodging electronically through ATO Online services (available from 1 January 2018).

    Multiple events per member can be reported in a TBAR if you lodge a paper form or via ATO Online services.

    If you are lodging a data file using the Business Portal or Tax Agent Portal, multiple Member data records can be lodged in each file (data set).

    A super provider must have a current ABN to use an electronic reporting channel. Our electronic reporting channels will automatically route the report to the correct processing area and are the most efficient method of TBAR lodgment.

    File lodgment

    Super providers and intermediaries will be able to submit a data file via the Business Portal or Tax Agent Portal to lodge a TBAR.

    If you are planning to lodge using this method you should refer to the Electronic reporting specifications.

    These specifications provide instruction for providers and intermediaries who wish to develop software for electronic TBAR lodgment.

    See also:

    Online lodgment

    Online lodgment via ATO Online services will be available from 1 January 2018.

    Super providers and intermediaries will be able to manually complete an online TBAR form.

    Information on how to lodge the TBAR online will be available closer to the date of availability.

    Paper report

    Go to Super Transfer balance account report instructions to locate the paper report and instructions.

    System specifications

    Refer to the system specifications, for information on developing software for the purposes of lodging a TBAR.

    Next step:

    Amending an incorrect report

    Where information submitted on the original report needs to be amended or the information supplied is incorrect, the original event will need to be cancelled before a new TBAR is lodged with the correct information.

    All the information previously supplied for that event will need to be resubmitted on a new TBAR with a cancellation indicator selected. This is required so we can identify the event that has been lodged in error.

    If required, once the report to cancel the incorrect information has been submitted a new TBAR with the correct information can be lodged.

    The instructions specific to the lodgment channel used by the provider contain further information on how to amend an incorrect TBAR.

    Further information

    As a result of the transfer balance cap there have been a number of changes to some of our web pages. These pages are listed below and will assist you to understand and comply with your transfer balance cap obligations.

    Publications

    Last modified: 02 Jan 2018QC 54147