For accountants managing SMSFs, staying on top of lodgements is crucial to ensure regulatory compliance, prevent penalties and avoid unnecessary commutations. SMSFs must report all events in the July – September quarter affecting the member’s Transfer Balance Account and lodge the TBAR by October 28, 2024.
What Events Need to be Reported?
All SMSFs, even those with less than $1 million, must report all the events affecting the Transfer Balance Accounting (TBA). These events should be reported and lodged within 28 days after the end of each quarter:
- Commencing or commuting a pension in the retirement phase.
- Transferring reversionary pensions to beneficiaries (the start date is the member’s date of demise, and the value is the value of the income stream on the date of demise.
- Adjustments or commutations impacting the transfer balance account (TBA).
When preparing and managing your client’s TBAR, you can follow ATO’s guidelines on event-based reporting and TBAR instructions.
Lodgement Timelines
- Quarterly Reporting: For events during the July-September quarter, you need to lodge TBAR by October 28, 2024.
- Reporting is not required if no TBA events have occurred in the quarter.
Failure to lodge your clients’ TBARs accurately or on time can result in excess transfer balance tax, which can impact their retirement phase benefits. Helping your clients track events and lodge the TBAR on time can prevent penalties and ensure long-term financial security for their SMSF.
Contact us to learn more about our SMSF solutions and how we can help your accounting firm.