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Mar 2018 2 Minutes

TBAR Reporting

Due to recent legislative changes it is a requirement by the Australian Taxation Office (ATO) that all superannuation funds report the pension balance as at 30 June 2017 by the 1 July 2018.  This is reported to the ATO using the Super transfer balance account report (TBAR).

The TBAR’s purpose is to capture all information about superannuation amounts moving in and out of retirement phase accounts.  This will assist the ATO to keep track and record member balances for both the transfer balance cap and total super balance.

Reportable events include the following:

  • Superannuation income streams in existence as at the 30 June 2017.
  • New retirement phase income streams.
  • Limited recourse borrowing arrangement payments.
  • Member commutations.
  • Compliance with a commutation authority issued by the Commissioner.
  • Personal injury (structured settlement) contributions.
  • Superannuation income streams that stop being in retirement phase.

The transfer balance cap applies from 1 July 2017.  It is the new limit on the amount of superannuation that can be transferred into retirement phase.  Your pension account balances from all your superannuation funds are included when working out the transfer balance cap.  The cap will start at $1.6 million and will be indexed periodically in $100,000 increments in line with CPI. The total superannuation balance is the total value of your accumulation and pension accounts across all of your superannuation funds.

There will be ongoing additional reporting obligations for superannuation funds.  From the 1 July 2018 transfer balance account events must be reported.  For individuals with more than $1 million in total super balance, the fund has quarterly TBAR reporting obligations.  The TBAR must be lodged with the ATO within 28 days after the end of the quarter of the event.  For individuals with less than $1 million in total super balance, the fund must report by the time the fund’s annual return is lodged for the relevant year.