The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. The initiative allows for the administration of the Transfer balance cap (TBC). Under the EBR framework, you need to report to the ATO, when the first member of your SMSF begins a retirement phase income stream.
The SMSF annual return is to be kept separate from the transfer balance account report. The TBAR enables the ATO to record and track an individual’s balance for their TBC and superannuation balance.
The ATO does not provide ‘special circumstances’ discretion for contraventions of the TBC which is why SMSF trustees and members self-monitor to ensure that members do not exceed their TBC.
Events to report
Your SMSF must report events affecting a member’s transfer balance including:
- Details of pre-existing income streams (including value and type) being received on 30 June 2017 that continued to be paid to them on or after 1 July 2017 or were in retirement phase on or after 1 July 2017
- Details of new retirement phase and death benefit income streams including value and type (when a death benefit income stream is reversionary, the start date will be the date on which the member died)
- Details of limited recourse borrowing arrangement (LRBA) payments (including the value and date of each relevant payment) if the LRBA was entered on or after 1 July 2017 and the payment results in an increase in the value of the member’s interest that supports their retirement phase income stream
- Compliance with a commutation authority issued by the Commissioner
- Details and value of personal injury (structured settlement) contributions
- Details and value of commutations of retirement phase income streams that occur on or after 1 July 2017
Exclusions
- Any pension payments, or investment earnings and losses made on or after 1 July 2017
- When an income stream ceases because the interest has been exhausted
- Death of a family member
- Information individuals report to the ATO using a Transfer balance event notification in the event of family law payment split, a debit event from fraud, dishonesty or bankruptcy and structured settlement contributions made before 1 July 2007
