• Transfer balance account report now available

    The new Transfer balance account report (TBAR) and TBAR instructions are now available on ato.gov.au. We plan to have an online TBAR form available from 1 January 2018.

    SMSFs can use the TBAR to report events that affect an individual member’s transfer balance account. While SMSFs will not be required to report anything until 1 July 2018, the option will be available from 1 October 2017.

    Reporting on events that affect a member’s transfer balance account is vital to minimising the taxation consequences if the transfer balance cap is exceeded.

    SMSFs with relatively straightforward affairs are likely to have only a few events per member to report over the life of the fund. The most common events that require reporting are:

    • the values of any retirement phase income streams to which an SMSF member is entitled, including reversionary income streams
    • the value of any commutation of a retirement phase income stream by an SMSF member
    • structured settlement payments an SMSF member receives and contributes to their fund
    • certain limited recourse borrowing repayments that give rise to a transfer balance credit as a result of recently enacted legislation.

    Note: The consultation period regarding reporting frequency closed on 15 September 2017. We will provide an update on this in the next edition of SMSF News.

      Last modified: 27 Sep 2017QC 53402