If you have an SMSF with a member in retirement phase, there is a new quarterly compliance requirement that you need to be aware of.
From 1 July 2023, all SMSFs with members in retirement phase must report transfer balance account events by lodging a transfer balance account report (‘TBAR’) quarterly.
Currently, some SMSFs can lodge their TBAR with the SMSF annual return (‘SAR’) when all members have a total superannuation balance of less than $1 million.
The ATO says this change has been made to remove complexity for SMSFs regarding when they need to lodge. It will also provide members with more timely and accurate information which will allow them to better manage their transfer balance cap and avoid excess transfer balance tax.
SMSFs that are currently reporting annually will need to report all transfer balance account events that occurred in the 2023 income year by 28 October 2023.
The ATO notes that SMSFs can start transitioning over to lodging quarterly now (which should save time at the end of the income year).
The ATO recommends that trustees should familiarise themselves with the reporting obligations for different transfer balance events that can occur and, when completing a
TBAR, make sure they review the TBAR instructions.
If you are an existing customer of ours then you need not worry as we have this process already in place for your SMSF.
However, if you have an SMSF that is required to lodge a TBAR in accordance with the new rules and your current advisors have not yet been in touch with you then contact Shannae Hewett on 03-55612643 and make a time to meet with our experienced Team to organise this for you.
Have great day!
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