From 1 July 2017, a limit came into effect on the total amount a superannuation fund member can transfer into retirement phase across all of their superannuation funds. The limit is referred to as the ‘transfer balance cap’ (TBC) and is currently $1.6 million for the 2017/2018 financial year. Due to indexation, the TBC has increased to $1.7 million on 1 July 2021 and increased to $1.9 million from 1 July 2023
To keep track of a member’s TBC, all superannuation funds are required to report certain events to the Australian Taxation Office via a ‘Transfer Balance Account Report’ (TBAR) (NAT 74923).
The TBAR enables the Tax Office to record and keep track of a superannuation fund member’s TBC and their total superannuation balance (TSB).
The table below summarises common TBAR reporting events and exclusions from 1 July 2017:
| Events you must report | Events you don’t need to report |
|---|---|
| An existing pension account that is in retirement phase and continued to be paid on or after 1 July 2017 | Pension payments |
| Commencing a retirement phase pension account | Investment earnings or losses |
| Limited recourse borrowing arrangement payments that increase the value of a retirement phase pension account | When assets supporting a pension account are exhausted |
| Member commutations from a retirement phase pension account | Death of a member |
| Compliance with a commutation authority issued by the Commissioner | Information that members report to the ATO directly by lodging a transfer balance event notification form (NAT 74919). For example: - family law payment split - debit event from fraud, dishonesty, or bankruptcy - structured settlement contributions made before 1 July 2007 |
| Personal injury (structured settlement) contributions | Information other funds will report to the ATO, such as a member’s interest in an Australian Prudential Regulation Authority fund |
| Cessation of a retirement phase pension account |
Timeframes for lodging a TBAR are determined by all members’ total superannuation balances as at 30 June of the previous financial year (FY). Once the reporting framework is set, the trustees will not be expected to move between annual and quarterly reporting due dates, regardless of fluctuations in any of its members’ balances.
Certain events are required to be reported sooner, see table below.
Events that occur prior to 1 July 2017
| Transfer balance account (TBA) event | All members’ TSB | Reporting method | TBAR due date |
|---|---|---|---|
| An existing retirement phase pension account that is continued to be paid on or after 1 July 2017 | N/A | N/A | On or before 1 July 2018 |
Events that occur on or after 1 July 2017 and Before 1 July 2023
| Transfer balance account (TBA) event | All members’ TSB | Reporting method | TBAR due date |
|---|---|---|---|
| A voluntary member commutation in response to an excess transfer balance determination | N/A as member has exceeded their TBC | N/A | Within 10 business days after the end of the month in which the commutation occurs |
| A response to a commutation authority | N/A as it is set by legislation | N/A | Within 60 days of the date the commutation was issued |
| Any other TBA event | Less than $1 million | Annually | No later than the due date for lodging the SMSF’s annual return for the FY in which the event occurs |
| Any other TBA event | More than $1 million | Quarterly | 28 days after the end of the quarter in which the event occurs |
From 1 July 2023, All SMSFs will be required to report quarterly, even if the members total super balance is less than $1 million. Event that affects the members transfer balance must be reported within 28 days after the end of the quarter in which the event occurs.
All unreported events that occurred before 30 September 2023 must be reported by 28 October 2023. This means you cannot report the TBAR events at the same time as your SMSF annual return (SAR) for the 2022–23 income year.