On Wed 16.8.2017, the ATO released Draft Reporting of event based transfer balance account information in accordance with the Taxation Administration Act 1953 – Draft SPR 2017/D2 (SPR = Superannuation Provider Reporting).

It sets out the way in which superannuation providers in relation to superannuation plans, and life insurance companies in respect of certain life insurance policies, are required to report transactions to enable the ATO to determine if an individual has exceeded their transfer balance cap and take appropriate action. The principal purpose of the Instrument is to set out the timeframe under which the Transfer Balance Account Report (TBAR) is to be provided to report transaction data relating to members of superannuation funds and life insurance companies.

The Instrument applies to every superannuation provider in relation to a superannuation plan and every life insurance company, who is required to lodge a TBAR. The TBAR is required to be lodged, no later than 10 business days after the end of the month, or such later date as I may allow, in which the relevant reporting event occurred.

Following industry consultation, the ATO said it intends to provide some administrative concessions for SMSFs to support their transition to event based transfer balance cap reporting which will be announced and communicated separately.

COMMENTS are due by 22 August 2017.

DATE OF EFFECT: This instrument will commence on the day after it is registered on the Federal Register of Legislative Instruments and will apply from 1 October 2017.

[ATO website: Draft Instrument – SPR 2017/D2; LTN 155, 16/8/17; TT August]

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