The new transfer balance account report (TBAR) is available on the ATO’s website.
Self-managed super funds can use the TBAR report to report events that affect an individual member’s transfer balance account. The option to report is available from 1 October 2017, however, SMSFs are not required to report anything until 1 July 2018.
Events that affect a member’s transfer balance account will need to be reported to minimise the tax consequences of exceeding the transfer balance cap.
Funds with straightforward affairs are likely to have only a few events per member to report over the life of the fund. Common events that will require reporting include:
- the values of any retirement phase income streams to which an SMSF member is entitled, including reversionary income streams
- the value of any commutation of a retirement phase income stream by an SMSF member
- structured settlement payments an SMSF member receives and contributes to their fund
- certain limited recourse borrowing repayments that give rise to a transfer balance credit as a result of recently enacted legislation.