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  • Updated web guidance on transfer balance cap reporting

    We've updated our web content surrounding the transfer balance cap based on what we're seeing in the sector and industry feedback.

    Super TBAR instructions

    We've updated the Super transfer balance account report (TBAR) instructions to:

    • make it clearer that self-managed super funds (SMSFs) need to use a TBAR to report transfer balance cap events and their response to a commutation authority, including that they commuted the income stream set out in the commutation authority sent to the fund
    • other super providers only need to use a TBAR to report their response to a commutation authority
    • clarify how to use this form to report an SMSFs response to a commutation authority
    • include additional information on how to correct reporting errors and cancel a TBAR
    • include a link between the form instructions and the valuation guidelines for SMSFs
    • clarify the TBAR should not be used to report a member’s accumulation phase value to us after the 2017 income year; this information should be reported as part of the SMSF’s annual return
    • clarify the TBAR should not be used to report a member’s retirement phase value to us; this information should be reported to us as part of the SMSF's annual return.

    SMSF event-based reporting

    We've also updated our guidance on event-based reporting for SMSFs to highlight their record keeping obligations for transfer balance cap reporting, including the need to ensure:

    • the commencement and commutation of retirement phase income streams is supported by contemporaneous fund records
    • payments to members are correctly characterised and allow trustees and auditors to ensure the minimum pension payment standards have been met, especially where pension payments have been made from an income stream that has also been commuted in full or part during the year
    • TBAR reporting for the commencement and commutation of retirement phase income streams aligns with the SMSF's exempt current pension income (ECPI) claim for a year.

    See also:

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      Last modified: 24 Jul 2019QC 59749