HQB’s Weekly SMSF News – Week 14

Transfer Balance Account Reporting (TBAR) – what is this and how does this affect my SMSF?

• TBAR refers to legislation that was introduced from 1 July 2018 that put a limit on how much an individual can transfer to pension phase ($1.6 million at the time).
• This meant that for those individuals with more than $1.6 million in super, they could no longer access a zero percent tax rate on their super fund earnings.
• TBAR applies to all SMSFs, not just those with more than $1.6 million.
• A SMSF is required to submit a Transfer Balance Account Report where a “transfer balance account event” happens.
• The most common types of transfer balance account events include, commencing or commuting a retirement phase income stream (pension account)
• From 1 July 2023, Transfer Balance Account Reports are due quarterly from 1 July 2023, due by the 28th day following the quarter in which the event occurred.
• If a SMSF has not made a transfer balance account event during a quarter, there is no requirement to submit a report.

Please don’t hesitate to contact our office should you wish to discuss how TBAR may affect your SMSF.

– Brad Sheaves

Posted 29.11.2022

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.