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Opening balances for TBAR

For information on entering opening pension balances, see:

Input Opening Balances for Pension Accounts

Transfer Balance Account

When entering opening pension balances for a new fund on or after 30/06/2017, a Transfer Balance Account adjustment will also need to be recorded in the first financial year processed in Simple Fund 360.

An example of these opening balance adjustments is:

  • Opening Balances entered as at 30/06/2020
  • First reporting period = 2021 FY (01/07/2020 - 30/06/2021)
  • Transfer Balance Account Adjustment is needed on 01/07/2020

Important Note about adding the TBA Adjustment

  • The amount entered for the adjustment needs to include the Full TBA.
    • This includes external funds.

  • Any historical transactions entered before the first reporting period also need to be included in this adjustment as anything entered prior to this will not flow through to the current financial year.

To enter the opening pension balance Transfer Balance Account transaction in Simple Fund 360 a manual adjustment will be added to the Transfer Balance Dashboard.

Example:

Entry Date 01/07/2020
Transaction Type  Existing Pension Balance
Member Account Code  SF360 Member Account Code 
Event Type  N/A: Non-Reportable Event
Credit  Pension Value 
From the Main Toolbar, go to Member.

Select Transfer balance dashboard from the list.

Select Add Adjustment to input any adjustment.

For example, an opening pension balance of $500,000 has been entered for John Jones as at 30/06/2020. The corresponding Transfer Balance adjustment would be entered on 01/07/2020 as follows:

mceclip0.png

(Right-click the image and select "Open image in new tab" to view in full size)

 

TBAR Indexation in Opening Balance Periods

New funds created from the 2022 FY onwards will need to account for Transfer Balance Cap indexation.
When funds are past the indexation date of 01/07/2021, members are automatically set to the new Transfer Balance Cap of $1,700,000.
In the case this cap needs to be adjusted, follow the instructions below to create a cap adjustment event:
  1. Navigate to Fund > Fund Details:
    mceclip0.png

  2. Change the first date under "Financial Year" to 01/07/2020. Then, click Save Changes:
    mceclip1.png
    This allows you to post a prior year adjustment to trigger the TBAR indexation.

  3. Next, navigate to Member > Transfer Balance Dashboard:
    mceclip2.png

  4. Ensure the Financial Year selected is 2020 - 2021:
    mceclip3.png

  5. Select Add Adjustment next to the appropriate member. Then input an adjustment similar to the adjustment shown below. The credit value entered is not important, but a positive number is required. Then click mceclip5.png.

mceclip10.png

 

  1. Now, change the Financial Year above to 2021 - 2022 and click Calculate Personal TBC:

    mceclip6.png
  2. This creates a Transfer Balance Cap event that can be adjusted. Click mceclip7.png and enter the desired Cap Limit, then click mceclip5.png:
    mceclip8.png

  3. After the Cap had been adjusted, change the Financial Year above back to 2020 - 2021, then delete the Adjustment created in the prior Financial Year:
    mceclip9.png

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