This news is important for all who have Self-Managed Super Funds to stay compliant by submitting their TBAR on time…
Superannuation Transfer Balance Account Report (TBAR) is a regime where SMSFs are required to report those events which impact on a Member’s transfer balance account on a real-time basis.
Quarterly TBAR lodgment reminder
SMSFs must report certain events that affect a member’s transfer balance account (‘TBA’) quarterly using transfer balance
account reporting (‘TBAR’).
These events must be reported even if the member’s total superannuation balance is less than $1 million.
Editor: TBA events include starting or commuting a retirement phase pension.
TBARs for the March quarter are due on 28 April 2025 and SMSFs that do not report on time may be subject to compliance action and penalties, and the member’s TBA may be adversely affected.
Note that SMSFs are not required to lodge if there were no TBA events during the quarter.
General transfer balance cap will be indexed on 1 July 2025
Indexation of the general transfer balance cap (‘TBC’) will occur on 1 July 2025. This cap will increase by $100,000 from $1.9 million to $2 million.
Editor: The general TBC amount is used for a number of purposes, including to determine the total capital amount that can be transferred to the retirement (pension) phase, and to determine eligibility for making non-concessional contributions.
This increase has flow through impacts for individuals who have started a retirement phase pension, as they will be entitled to an increase to their personal TBC if they have not previously been at, or exceeded, their cap.
Individuals starting a pension for the first time on or after 1 July 2025 will be entitled to a personal TBC of $2 million.
The ATO will calculate an individual’s personal TBC based on the information reported to and processed by the ATO. To help individuals have a clear understanding of their position, the ATO encourages funds to report all ‘TBC events’ when they occur and as early as possible before the 1 July 2025 indexation start date.
Editor: Indexation of the general TBC also has flow through consequences for the Total Super Balance (‘TSB’). The TSB influences an individual’s non-concessional contributions cap, non-concessional bring forward arrangement, and eligibility for spouse tax offset and co-contributions.
Managing SMSFs can be confusing sometimes, as there are many regulations that come into play. If you’ve got any questions at all regarding proven retirement strategies, think Straight Money Talk. We’ve got you covered, just send us a message to arrange a FREE Personal Finance Health Check with us.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
