Sladen snippet – ATO releases final position on TBAR with a welcome compromise
The ATO has released a media release confirming its final position on its new event based reporting regime to be known as the transfer balance account report or “TBAR”. After consulting with industry, including Sladen Legal’s Phil Broderick, the ATO has determined that self managed superannuation funds (SMSFs) that don’t have a member with more than $1 million of total superannuation benefits will be able to report most of their credits and debits under the transfer balance cap regime (ie starting and stopping/commuting pensions) on an annual basis (ie when the SMSF lodges its tax return).
This is a welcome compromise. As a result, most SMSFs can continue to report to the ATO on an annual basis (for both their tax returns and their TBAR), meaning reduced costs and less of an administrative burden.
SMSFs with a member who has more than $1 million in total superannuation benefits will, from 1 July 2018, need to report their credits and debits on a quarterly basis (being 28 days after the end of the quarter in which the credit/debit occurs). SMSFs in this position will need to liaise with their advisors more regularly if they are proposing to start or stop pensions.
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