‘TBAR’ stands for transfer balance account report and is a document notifying the ATO when a Fund member has triggered a transfer balance account event in relation to their transfer balance cap.
The transfer balance cap applies from the 1st July 2017 and limits the total amount of superannuation that
You can continue to make multiple transfers into the retirement phase as long you remain below the cap which is currently set at $1.6m per person.
From the 1st of July 2018 SMSFs will have to lodge the ‘TBAR’ for their members with the ATO detailing the following events:
- income streams a member was
receiving on 30 June 2017 that- continued to be paid to them on or after 1 July 2017, and
- are in
retirement phase.
- new retirement phase income streams
- some limited recourse borrowing arrangement payments
- compliance with a commutation authority issued by the Commissioner
- personal injury (structured settlement) contributions
- commutations of retirement phase income streams.
There will be two different lodgment dates of the report for Self-Managed Super Funds (SMSFs) depending on the total superannuation balance of its member.
If a Fund member has a total superannuation balance of less than $1m then an SMSF can report this information at the same time when its annual income tax return is due.
However, if any the Fund has any members with a total superannuation balance of $1m or more they must report events
An income stream payable to an SMSF member just before 1 July 2017 that continues to be paid to the member on or after 1 July 2017 must be reported to the ATO on or before 1 July 2018.
If an SMSF does not lodge a ‘TBAR’ by the required date there may be penalties levied.
Please note that a transition to retirement income stream (TRIS) will only count towards your transfer balance cap when it is in retirement phase i.e. when the member retires or notifies the Fund that they’ve satisfied a full condition of release.
For further information please contact this office to talk to a licensed adviser.