When a Commissioner’s commutation authority (CCA) is issued, you must notify us within 60 days using the correct reporting event and by lodging the transfer balance account report (TBAR).
If you don’t respond within 60 days of the notice, your member’s income stream stops being in retirement phase. This means the fund, that fails to comply with the CCA, can't claim an earnings tax exemption for this income stream in the income year or any later income years.
How to report the correct event in your TBAR
You must report one of the following in your transfer balance account report (TBAR):
- CC1 – full commutation of the amount stated in the notice, including cents
- CC2 – partial commutation, such as when the income stream balance is less than the amount in the notice
- CC3 – the member is deceased
- CC4 – the account is a capped defined benefit income stream (CDBIS).
Do not use a Member Commutation (MCO) event when responding to a CCA as this creates errors and delays resolution.
Reporting correctly will help your members manage their transfer balance cap as they will have up to date information visible on ATO online services.
Account closures and MAAS reporting
If the income stream has been exhausted or closed, you also need to lodge a MAAS closed notification for that account. This ensures we don’t issue future CCAs for that income stream.
If you are late in responding to the Commutation Authority
We can't grant an extension of time to respond to a CCA.
If you failed to respond to the CCA by the due date, we may contact you to request information of the full debit value of the income stream on the date the CCA was required to be complied with. This debit value will arise in your member's TBA and resolve their excess transfer balance.
For full instructions and examples see: Transfer balance cap – Commissioner’s commutation authority.
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