Trustee Reporting Obligations for April: Transfer Balance Account Report (TBAR)
For some SMSF’s, the Transfer Balance Account Report (TBAR) is due on April 28. It’s important to note additional considerations ahead of the indexation of the transfer balance cap later in the year.
You’re required to lodge a TBAR for SMSF clients where:
- A transfer balance account (TBA) event occurred in the SMSF between 1 January and 31 March 2021, and
- any member of the SMSF has a total super balance greater than $1 million.
If no TBA occured, or if none of the SMSF members has a total super balance over $1 million, you do not need to report by this date.
Note: the TBAR is separate from the SMSF annual return (SAR).
It’s Time to Prepare to Lodge your SMSF Annual Return (SAR)
Some SMSFs have their SMSF annual return (SAR) due by 15 May 2021.
In preparation for your lodgment, you need to appoint an approved auditor, who will examine the SMSF’s financial statements, completing a market valuation of all assets to determine your client’s financial position and compliance with SMSF laws (see our recent article about changes to SMSF auditor independence standards).
“A SAR lodged without auditor’s details will be suspended and not recognised as a lodgment. This will impact the complying status of the fund until the SAR is lodged with the required information,” the ATO said.
The ATO recommends an auditor is appointed by April 1 to meet the SAR deadline. If you haven’t assigned on yet, contact the ATO regarding your circumstances.
If your SAR is more than two weeks overdue, and you haven’t the ATO, the status of the SMSF on Super Fund Lookup will be changed to ‘regulation details removed’. This status will remain until any overdue lodgments are brought up to date.
If you have a status of ‘Regulation details removed’, APRA funds will not be able to roll over member benefits and employers will not be able to make any super guarantee payments to the fund’s members.