Real time transfer balance account reporting requires reporting to the ATO within a mandated timeline whenever a pension member creates a Debit or Credit to their Transfer Balance Account. The ATO’s goal for Real Time Reporting is to maintain current transfer balance account records so that they can detect any breach of the transfer balance cap at an early stage. This would lower the level of notional interest that would otherwise be applied to the breach where detection was delayed.

Historically the ATO would only receive the necessary information once the Annual Return was lodged, in some cases up to 18 months from when the Pension started.

Following a period of industry consultation, the ATO has now confirmed that SMSFs with at least one member with a total super balance of $1m or more (across all funds), as at 30 June the previous year, must report events that effect the transfer balance account quarterly. This report must be lodged within 28 days of the end of the Quarter. This permanent reporting measure will apply from 1 July 2018 using the total super balance as at 30 June 2018.

Where none of the members of an SMSF hold a total super balance of $1m plus, reporting will be annual. As this delay would not affect members with lower balances it is sensible that they are being excluded from the measure.

These changes will certainly make it difficult for SMSFs that are currently administered annually to comply. As we process all funds daily we will have no difficulties in satisfying the requirements.