Preparing to lodge quarterly January TBAR

The ATO is reminding SMSF trustees that if they have had transfer balance account events in the last quarter they must lodge a TBAR by 28 January 2025.

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The regulator said SMSFs must report certain events that affect members’ transfer balance accounts quarterly using transfer balance account reporting (TBAR). These events must be reported even if the member's total superannuation balance is less than $1 million.

TBARs for the December quarter are due on 28 January 2025. The ATO said if trustees do not report on time, they may be subject to compliance action and penalties, and their members’ transfer balance accounts may be adversely affected.

It said the member may need to commute any amount more than their cap and pay more in excess transfer balance tax. Trustees are not required to lodge if there were no transfer balance account events during the quarter.

Additionally, the regulator has also reminded trustees that they must appoint an SMSF auditor at least 45 days before they need to lodge their annual return.

The auditor must be independent and registered with the Australian Securities and Investments Commission.

It continued that SMSFs must be audited even if the fund does not have to pay tax, is in pension mode, or has no contributions, income or payments in the financial year.

Trustees must provide all relevant documentation to their auditor so they can perform a financial and compliance audit before lodgment. They also need to provide their SMSF auditor number (SAN) on their annual return when they lodge.

The auditor will advise the trustee of any rule contraventions. Trustees are responsible for rectifying any contraventions as soon as possible. If they are unable to rectify a contravention they should use the ATO’s SMSF early engagement and voluntary disclosure service to lodge a voluntary disclosure.

 

 

 

Keeli Cambourne
November 27 2024
smsfadviser.com

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Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

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