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TBAR Reporting Cycle

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Hi,

 

My question is regarding the Transfer Balance Account Reporting.

 

Facts:

1. A single member fund has a pre existing pension as at 30 June 2017 and the member's TSB at the time is less than 1 million.

2. The member's pension account was properly reported on the TBAR lodged on 1 July 2018.

3. No other TBAR events occured during 2017-18 FY and 2018-19 FY.

4. On 2 July 2019, the member made a partial commutation from his pension account (TBAR event).

5. Member's TSB as at 30 June 2019 is more than 1 million

 

Question:

To determine the lodgment due date  of the 2/07/19 TBAR event, should I refer to the 30/6/17 or the 30/06/19 balance?

If 30/6/17 balance will be used, the Fund will be an Annual reporter. However, if the 30/06/19 balance should be used, the Fund will be a Quarterly Reporter.

 

 

 

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Devotee

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Hi @JCSMSF 

 

Q: To determine the lodgment due date of the 2/07/19 TBAR event, should I refer to the 30/6/17 or the 30/06/19 balance?

 

A: Use the 30/6/17 balance

 

Explanation:

Under the current event-based reporting framework for SMSFs, the fund works out whether the quarterly or annual reporting arrangements apply when the fund goes from having no members in retirement phase to having at least one member in retirement phase (or otherwise on 30/6/17 if any member was in retirement phase when TBC started).

 

Once the framework that applies to your SMSF (i.e. annual or quarterly) is initially determined, the SMSF will not be expected to move between annual and quarterly reporting, regardless of fluctuations to any of the members' balances.

 

So, if your SMSF started out as an annual lodger the fund will always be an annual lodger (which is not to say more frequent lodgments might not be beneficial in many cases or required if a member exceeds their TBC, but it does give certainty about the minimum requirements).

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

2 REPLIES 2
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Best answer

Devotee

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Hi @JCSMSF 

 

Q: To determine the lodgment due date of the 2/07/19 TBAR event, should I refer to the 30/6/17 or the 30/06/19 balance?

 

A: Use the 30/6/17 balance

 

Explanation:

Under the current event-based reporting framework for SMSFs, the fund works out whether the quarterly or annual reporting arrangements apply when the fund goes from having no members in retirement phase to having at least one member in retirement phase (or otherwise on 30/6/17 if any member was in retirement phase when TBC started).

 

Once the framework that applies to your SMSF (i.e. annual or quarterly) is initially determined, the SMSF will not be expected to move between annual and quarterly reporting, regardless of fluctuations to any of the members' balances.

 

So, if your SMSF started out as an annual lodger the fund will always be an annual lodger (which is not to say more frequent lodgments might not be beneficial in many cases or required if a member exceeds their TBC, but it does give certainty about the minimum requirements).

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

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Thanks @JamesF  Smiley Happy