Are you a SMSF member near to the retirement age? If yes lodge your transfer balance account report (TBAR). By filing a TBAR quarterly, all self-managed super funds (SMSFs) with members in the retirement phase are required to record their reports as of 1 July 2023.

Some SMSFs are able to file their TBAR with the SMSF annual return (SAR), where all members have a combined superannuation balance of less than $1 million. This change was intended to simplify the timing requirements for SMSFs.

Additionally, it will give members access to more fast and accurate information, enabling them to manage their transfer balance cap and reduce their overall transfer balance tax.

You should become familiar with the various transfer balance occurrences and your reporting responsibilities.

If you now submit your reports annually, you must do so by October 28, 2023, for all transfer balance account events that happened during the 2023 tax year.

You can start making the switch to lodging quarterly right away to save time at the conclusion of the fiscal year.

The super transfer balance account report (TBAR) should be used to:

• advise the ATO when a transfer balance account event occurs
• respond to a commutation authority that ATO have issued to a super fund
• use this information to adjust your member’s transfer balance account
• apply the transfer balance cap provisions
• cancel information that you have reported to ATO
• revoke the information you have provided to ATO

You will only have one transfer balance account for all your retirement phase interests which will remain active until your death.

Before lodging and completing a TBAR, make sure you review the TBAR instructions and stay updated with the SMSF news. For any lodgement assistance, feel free to contact our tax accountants at KPG Taxation. We are one of the reputed taxation firms in Geelong and Dandenong offering the best tax advice and lodgement.