Do you own a self-managed super fund and want to know the events you can report? An SMSF must report the member events that affect their transfer balance account by certain dates to avoid late reporting consequences.

Events You Need To Report

Common events you must report are:

• details of when a member starts a retirement phase income stream
• details of the death benefit income stream
• type of income stream
• the value of income stream
• start date of income stream

In case of a reversionary beneficiary:

• the start date will be the date the member died
• the value will be the value of the income stream on the date of death of the member
• details of commutations of retirement phase income streams before it is rolled over

Other events to be reported include:

• details regarding payments made under a limited recourse borrowing agreement (LRBA), if the LRBA was signed on or after July 1, 2017, and the payment raises the value of the member’s interest, which supports their retirement phase income stream.
• compliance with a commutation authority issued by the ATO
• details on contributions to a personal injury structured settlement.

Note: If no event occurs, you have nothing to report.

What You Do Not Need To Report

Some events where an SMSF does not have to report on a transfer balance account report (TBAR) are as follows:

• Pension payments
• Investment gains and losses
• A member’s death
• An income stream ends because the interest is exhausted
• Information that people directly report to the ATO using a Transfer Balance Event Notification Form (NAT 74919), which includes:

1. description of the event
2. family law payment split
3. debit event resulting from dishonesty, fraud, or bankruptcy
4. contributions to structured settlements made before July 1, 2007

• Information that other funds submit to the ATO, like a member’s involvement in an APRA fund.

When You Need To Report

Events affecting the transfer balances of SMSF members must be reported by all SMSFs. The due dates will be based on total super balance until June 30, 2023. ATO advises the SMSF members to report events before they are due because it:

• helps members manage their transfer balance account and avoid exceeding their personal transfer balance cap
• helps ensure calculation of a member’s personal transfer balance cap is based on accurate data
• prevents the issuance of incorrect excess transfer balance determinations

Note: You do not need to report to the ATO, if no event occurs.

So, these were some SMSF reporting basics to keep in mind. For more information, schedule a consultation with our tax accountants at KPG Taxation.