Tag Archive for: Self-managed super funds (SMSF)

Changes to TBAR reporting requirements for SMSFs

A self-managed super fund (SMSF) must report events that affect a member’s transfer balance account to the Australian Taxation Office (ATO) via Transfer Balance Account Reports (TBAR).

Due dates for reporting used to be determined by the total super balances of an SMSF’s members. However, this distinction has been removed.

From 1 July 2023, all SMSFs – regardless of their total balance – must report transfer balance account events to the ATO quarterly. Therefore, you must lodge a TBAR within 28 days after the end of the quarter in which the event occurred. Some circumstances mean these events must be reported sooner.

Common pension events that require a TBAR include:

  • Pension commencements
    When you start getting money from your super fund for retirement (starting a retirement phase income stream). This includes if you get money from someone else’s super fund after they pass away (death benefit income stream).
  • Pension commutations
    If you take money out as a lump sum, stop your pension account, or decide to move the money to another super fund instead of keeping it in your SMSF. (Note, regular pension drawdowns are not reportable.)

Other events relate to limited recourse borrowing arrangement (LRBA) payments, compliance with a commutation authority from the ATO, and personal injury (structured settlement) contributions.

What do you need to do?

This reporting requirement underscores the critical need for proactive communication between SMSF members and administrators. Whether initiating pension payments or making significant lump sum withdrawals, it is vital to promptly inform your SMSF administrator of these transactions.

By keeping us abreast of any pension events, we can help generate the necessary documents and ensure timely reporting to the ATO. Unfortunately, failure to comply with these reporting deadlines can result in nasty penalties and legal repercussions.

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About the author

Kerrie Stephenson SMSF Accountant Tasmania

Kerrie Stephenson
SMSF Client Manager

Kerrie has almost 15 years’ experience specialising in self-managed superannuation funds (SMSF) administration. She is passionate about helping our clients to meet their compliance obligations with ease and grow their SMSF. Contact us today and ask to speak with Kerrie. 

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Review your financial situation for 2024

New Year’s resolutions often fade away, but the commitment to pause, reflect and review your financial situation each year is one that should endure. At Synectic, we encourage you to make this your top priority early in 2024. To get started, consider the following:

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The Power of Property Valuations in your SMSF

As a trustee of a self-managed super fund (SMSF), your role is not just about compliance and ticking boxes. It’s about maximising the potential of your investments and securing a prosperous future for your fund and its members. Amidst a diverse array of possible assets and investments, one asset class demands special attention: property.

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Benefits of Direct Australian Share Investments in Superannuation

There are significant benefits associated with taking an independent, individually managed approach to investments in Superannuation. This is particularly true as investment balances grow and retirement planning commences.

Australian Superannuation funds are under the spotlight as the retirement system adapts to ageing demographics and longer life expectancies, and the retirement savings pool grows to become an increasingly large asset on the Nation’s balance sheet. The Superannuation Guarantee (SG) was introduced over 30 years ago and the system has matured. Funds under management have since grown to $3.4 trillion (as at the end of December 2022).

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Super balances above $3 million to be taxed at 30% – what does it mean?

The Albanese government have announced plans which will see the earnings on super balances above $3 million taxed at a concessional rate of 30 per cent, from 1 July 2025 onwards. The current rate on these earnings is 15 per cent.

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International shares for Aussie investors

Many Australian investors prefer to invest in Australian shares rather than international shares. It makes sense for a range of reasons:

  • it’s a good rule of thumb to invest in what you know;
  • franked dividends provide tax-effective income; and
  • the Australian share market has performed strongly over the long-run, outperforming broad international share markets (MSCI World ex-Australia) by around 2% p.a. over the last 20 years.
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Investment decisions in a time of inflation risk

“I don’t want my super going to zero,” said a prospective client during a recent risk profiling discussion. “I want conservative investment decisions that won’t lose money over time.”

In uncertain economic times it’s tempting to avoid investment decisions and hold onto cash. This is opposite to the temptation to chase investment returns while everyone else is making money hand over fist (think 12 months ago).

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Changes to Superannuation for employers, employees and retirees from 1 July 2022

A number of superannuation changes came into effect from 1 July 2022, including:

  • Changes to the work test and bring forward rules for those aged 67-75 years
  • Carry forward unused concessional contributions
  • Changes to contributing to super from the sale of your home (‘downsizer contributions’)
  • Government contributions for low-to-middle income earners
  • Pay an increased super rate to employees
  • Pay super to employees regardless of their earnings
  • Increased contribution allowance for first home buyers

Learn about these changes to superannuation and what you need to do below.

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SMSF Investments

Recently I’ve had a number of clients enquire about the pros and cons of setting up a Self-Managed Super Fund (SMSF). They have an instinct to get more control over their investments in Super. But they’re hesitant about the additional work involved in running a SMSF and are unsure of the costs.

There’s no perfect answer to the question, assuming one has sufficient funds to make it cost-effective. Anecdotally, I have seen a broad range of SMSF outcomes.

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Are you in control of who receives your super when you die?

It’s easy to assume that your Will would take care of your superannuation death benefit when you die. But that’s not the case – your super is dealt with separately from your Will.

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