Reporting notional interests
From just before 1 July 2026 (30 June 2026) an individual's total superannuation balance (TSB) will include the total superannuation balance value (TSB value) of any notional interest they are taken to have in a superannuation fund. Broadly, a notional interest arises when there is a payment split for family law purposes in respect of a member's superannuation interest, the non-member spouse cannot become a member of that superannuation plan and their entitlement has not been rolled over into a superannuation interest for their benefit.
Fund reporting requirements
30 June 2026 annual member balance reporting
Where the member spouse's interest is not in the retirement phase, funds are required to report the TSB value of both the member's interest and the notional interest.
Where the member's interest is in the retirement phase, we will use transfer balance account reporting to determine the TSB value of both interests just before 1 July 2026; funds are not required to report the TSB values of these interests for this time.
30 June 2027 annual member balance reporting
Funds will be required to report the TSB value of the member's interest, and the notional interest, annually from 30 June 2027 onwards. It does not matter, from this time, whether the member's interest is in the retirement phase or not.
Next steps:
For the 2025–26 annual member balance reporting, impacted funds may have reported the TSB value of their member's interest without taking into account the notional interest. They will have to amend the reporting of the TSB value of the member's interest and report the TSB value of the non-member spouse's notional interest to ensure the reporting is correct. This is because the TSB value of the notional interest affects the TSB value of the member’s interest.
Impacted funds are required to request a deferral through Super Enquiry Service (SES) to amend the 30 June 2026 TSB value of the member spouse and report the 30 June 2026 TSB value of the non-member spouse. This deferral request needs to be lodged by 20 November 2026. Please include the number of impacted members, how long you need to meet these reporting obligations and use 'BTSC notional interest reporting' as the reason for deferral. We will take into consideration the fund's circumstances and will respond to each request individually.
The ATO will not undertake any compliance action on impacted funds that have been unable to comply with their 31 October 2026 annual member balance reporting obligations for these members, provided the fund reports the correct TSB values by the deferral date agreed to by the Commissioner.
All other annual balance reporting was due on 31 October 2026.
Details on how to access SES can be found at Accessing and using Super Enquiry Service.