Where at the applicable 30 June at least one member had a total superannuation balance of $1 million or more then the SMSF must report all required events for all members within 28 days after the end of the relevant quarter. For events in 2017-18 this will be 28 October 2018.
However, if no member had a total superannuation balance of $1 million or more then the fund must report events no later than the due date for lodging the annual return for the income year in which an event occurs.
The ReportOften SMSF at 1 July 2017 had two members. Janet had $560,000 in accumulation, and Richard had $1,200,000 in an account based pension. In 2017-18 Janet commenced pension with her entire balance of $570,000 on 1 October 2017, and later in June took a pension payment of $17,000. Richard also took his minimum pension payment of $60,000 and an additional lump sum of $150,000.
The fund has members in retirement phase in 2017-18 and so needs to look at the 30 June 2017 member balances to determine how frequent they must report under the TBAR framework. As Richard has a total superannuation balance of $1 million or more the fund will have quarterly reporting requirements. The fund will have reported Richard’s pension balance at 1 July 2018 and must report Janet’s pension commencement and Richard’s lump sum withdrawal by 28 October 2018.
At 30 June 2018 Janet’s balance was $545,000 and Richard’s balance was $995,000. Even though Richard’s balance has now dropped below $1 million and so no member has a balance of $1 million or more the fund must still report any TBAR events in 2018-19 and future income years quarterly, because that was the reporting framework locked in upon the initial assessment for this fund at 30 June 2017.
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