Different timeframes apply to lodging a transfer balance account report, depending on whether you're:
- reporting a transfer balance account event
- reporting a commutation a member makes after they have exceeded their transfer balance cap and we have sent them an excess transfer balance determination
- responding to a commutation authority.
When to report a transfer balance account event
All SMSFs are required to lodge their TBAR quarterly.
You must report all transfer balance account events 28 days after the end of the quarter in which the event occurred. You may need to lodge a TBAR sooner where your member has exceeded their personal transfer balance cap.
These events must be reported irrespective of the member's total superannuation balance.
Prior to 1 July 2023, SMSFs depending on the members' total superannuation balance had the option to lodge annually. This is no longer the case. All SMSFs are required to lodge their TBAR quarterly, no matter what their members total superannuation balance is. This assists your members in making decisions around their transfer balance account.
If a member has exceeded their transfer balance cap
These time frames do not apply if your member has exceeded their transfer balance cap.
If a member has exceeded their transfer balance cap, you must report a voluntary member commutation of an income stream in response to an excess transfer balance determination within 10 business days after the end of the month in which the commutation occurs.
You must correct your reporting or report missing information to us as soon as possible when your member has exceeded their cap and we have issued:
- them with an excess transfer balance determination
- their fund with a commutation authority.
If you consider that the information we've relied on is incorrect or incomplete, let us know as soon as possible. This can happen if you've not reported an event such as a commutation to us.
When to report in response to a commutation authority
If you are responding to a commutation authority we issued, you must lodge the report within 60 days of the date of issue on your commutation authority. Refer to your commutation authority for the lodgment due date.
If you do not comply with the commutation authority by the due date, (that is, within 60 days of the issue date on the commutation authority) or tell us why you have not done so (using a TBAR), your member's income stream will stop being in the retirement phase. This will affect their entitlement to exempt current pension income. You may also be liable for penalties or subject to compliance action.
There is an administrative penalty if you don't notify your member of your response to the commutation authority within 60 days of the issue of the commutation authority.
Failure to lodge
If you don't lodge the report by the required date:
- your member’s transfer balance account may be adversely affected
- you may be subject to compliance action and penalties.
The transfer balance cap reporting protocol has been developed to assist APRA regulated funds with their transfer balance reporting.