The ATO uses transfer balance account reporting to determine an individual’s personal transfer balance cap, whether they have exceeded their cap and to apply the appropriate consequences if an excess has occurred.

There are currently two different time frames for transfer balance cap events-based reporting, depending on total super balances. 

“The ATO is looking to streamline transfer balance cap events-based reporting arrangements so that the same reporting time frame applies to all SMSFs, which will deliver better outcomes and provide more timely transfer balance account reporting,” the ATO said.

All SMSF industry stakeholders are welcome to provide feedback andThis email address is being protected from spambots. You need JavaScript enabled to view it., superannuation and employer. The consultation is expected to be completed by December 2021.

The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. It enables the ATO to administer the transfer balance cap. SMSFs generally need to start reporting to the ATO, under the EBR framework, when the first member commences a retirement phase income stream.

Time frames for reporting are determined by the total superannuation balances of an SMSF’s members unless the member has exceeded their personal transfer balance cap and has been sent an excess transfer balance determination, or their fund has been sent to a commutation authority.

SMSFs that have any members with a total superannuation balance of $1 million or more on 30 June the year before the first member starts their first retirement phase income stream, must report events affecting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.

When all members of an SMSF have a total superannuation balance of less than $1 million, the SMSF can report this information at the same time as when its SMSF annual return (SAR) is due.

Once the reporting framework is set, SMSF trustees will not be expected to move between annual and quarterly reporting, regardless of fluctuations to any of the members’ balances or changes in fund membership.

The ATO had noted previously it will continue to evaluate the reporting frameworks’ benefits and risks. For example, the $1 million reporting threshold may be re-evaluated in the future, given indexation of the general transfer balance cap.