The event-based reporting framework for self-managed super funds (SMSFs) commenced on 1 July 2018 helps ATO to administer the Transfer balance cap. However, there have been some common errors when it comes to TBAR. This article aims to make a summary of them and provide some general solutions.
Please note BGL does not provide tax advice. For compliance purposes, please check ATO -TBAR.
1. Duplicate Reporting
Duplicate reporting is mainly driven by user errors where an event has been reported more than once or where an event reporting is not required.
2. Late Reporting
Late reporting happens when an event is not reported to ATO in a timely manner. This may lead to issues with entitlement to exempt current pension income or pension accounts commuted twice where there are multiple pension accounts. Penalties may also apply.
1. Use online services from the ATO portal to track members' transfer balance cap, including transactions processed to TBA and information about excess transfer balance where applicable. This helps prevent potential duplicate.
3. To avoid late lodgement, it is important to understand the TBAR timeframe. Reporting is required usually quarterly or annually depending on the member balance, whereas 60 days are generally allowed to respond to an ATO Commutation Authority. For more details, please check ATO - When to report TBA