Show download pdf controls
  • Event-based reporting: What it means for you

    Following our announcement on 9 November 2017 on when self-managed super funds (SMSFs) need to report events affecting their members’ transfer balance, we have developed this article you can use as a quick reference guide.

    Find out about:

    See also:

    Events you need to report

    You only need to report events that affect an individual’s transfer balance.

    Common events include:

    • income streams a member was receiving just before 1 July 2017 continued to be paid to them on or after 1 July 2017 and that are in the retirement phase
    • new retirement phase income streams
    • commutations of retirement phase income streams.

    This does not include investment earnings, gains or losses, or pension payments.

    How often you need to report

    SMSFs whose members’ total superannuation balances are less than $1 million can choose to report events which impact their members’ transfer balances at the same time that the SMSF lodges its SMSF annual return.

    From 1 July 2018 those SMSFs that do have members with total superannuation account balances of $1 million or more will be required to report events impacting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.

    If an SMSF member has a pre-existing income stream, it must be reported to us via the Transfer Balance Account Report (TBAR) form on or before 1 July 2018. A pre-existing income stream is an income stream the member was receiving on 30 June 2017, which continued to be paid to them on or after 1 July 2017 and which are in the retirement phase.

    You should report transfer balance account events that occur during 2017–18 at the same time the SMSF's first TBAR form is due. This is either:

    • at the time they lodge their SMSF annual return – for those reporting annually
    • on 28 October 2018 – for those reporting quarterly.

    If the first time an SMSF member is in retirement phase is after 1 July 2018, the SMSF will need to assess its position, in relation to the $1 million threshold, on the 30 June immediately prior to the start of the relevant income stream. This will set the reporting framework for the fund. A fund will not move between annual and quarterly reporting regardless of fluctuations to any of its members' balances.

    Events you need to report sooner

    If a member exceeds their transfer balance cap, you must report the events sooner:

    • A commutation of an income stream, in response to an Excess Transfer Balance Determination we have issued to an SMSF member, must be reported 10 business days after the end of the month in which the commutation occurs.
    • Responses to Commutation Authorities must be reported within 60 days of the date the Commutation Authority was issued.

    In some situations we strongly encourage you to report earlier. There are two situations you should be aware of:

    • If an SMSF member rolls over their super benefit into an APRA-regulated fund and starts an income stream there, and it is not reported to us by the SMSF at the time it happens, a double-counting of the member’s income streams will occur. This is because there will be a mismatch in timing of the reporting done by the APRA-regulated fund and the SMSF.
    • If an SMSF member was in excess at 1 July 2017 and rectifies it by 31 December 2017 but does not report the rectification to us when the 30 June 2017 pension balances are reported, we will not know that the member has rectified the excess.

    In both these situations, there is real risk of us incorrectly issuing an Excess Transfer Balance Determination and a Commutation Authority. This could lead to an increase in administrative costs for the SMSF.

    To avoid this, you are encouraged to report commutations prior to a roll-over at the time of the roll over and a commutation that rectifies a small excess under the transitional rules at the time you report the initial income stream.

    See also:

    Changes to the TBAR paper form and instructions

    In response to your feedback, we have updated the paper Transfer Balance Account Report (TBAR) form to:

    • allow a fund to report up to four events for a member on a single form
    • make it clearer on how to report a pre-existing income stream for a member.

    See also:

      Last modified: 05 Dec 2017QC 54014