ATO finalise position on SMSF event-based reporting for transfer balance cap
Following extensive consultation with the super industry, from 1 July 2018:
- SMSFs with members with a total super balance of less than $1 million will report events that impact their members’ transfer balances at the same time that the SMSF lodges its annual return
- SMSFs that have members with super balances of $1 million or more will be required to report events impacting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
All SMSFs must report details of “pre-existing” income streams to the ATO by 1 July 2018.
A pre-existing income stream is an income stream the member was receiving on 30 June 2017, which continued to be paid to the member on or after 1 July 2017.
The ATO will continue to engage and work closely with the SMSF sector over the coming weeks and months to support the sector’s transition to the finalised event-based reporting arrangements announced on 9 November 2017.
Information about the transfer balance cap is available on the ATO’s website. The ATO will be releasing more information in the coming weeks to help fund members understand how new event-based reporting requirements affect you and your SMSF.
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More information on this announcement can be found here.