Recently some changes have been implemented in how Self Managed Super Funds report data to the ATO.
Transfer Balance Account Report (TBAR)
All SMSF must report events that affect the member’s transfer balance caps (TBC), the amount you transfer into the pension/retirement phase within your SMSF. See more information here on your TBC
The due date of this report depends on the Total Super Balance up until 30 June 2023, but these reporting requirements will change on 01 July 2023.
Up to 30 June 2023
- Total balance of $1 million or more:
If your total super balance was $1 million or more on 30 June, the year before the first member starts their retirement phase income stream, you must report quarterly.
This means you must report the event that affects the member’s transfer balance within 28 days after the end of the quarter where the event occurs.
- Total balance less than $1 million:
If the total balance was less than $1 million, you could report annually while you lodge your SMSF annual return.
From 1 July 2023, you will no longer be able to lodge annually. We recommend you start lodging quarterly now.
From 1 July 2023
All SMSFs must now report quarterly, even if the member’s total super balance is less than $1 million. This means you must report the event that affects the member’s transfer balance within 28 days after the end of the quarter in which the event occurs.
All unreported events that occurred before 30 September 2023 must be reported by 28 October 2023. This means you cannot report simultaneously as your SMSF annual return (SAR) for the 2022–23 income year.
The main events that require reporting are the commencement or cessation of an income stream or pension from your super fund.
As this will increase compliance within your SMSF, we will contact members accordingly and inform them of any increase to our fees for managing this compliance item.
Contribution Data and Reporting
When your employer contributes to your SMSF, they must make it through the SuperStream system. Under this system, your employer will require your Electronic Service Address (ESA) if your superfund is an SMSF. This ESA allows data to be sent to the ATO and to our accounting software, so we know who the contribution is for and what type of contribution it is.
What is SuperStream?
SuperStream is how businesses must now pay employee superannuation guarantee contributions to super funds. With SuperStream, money and data are sent electronically in a standard format.
It must be used by:
- self-managed super funds
- APRA-regulated funds
SuperStream transmits money and information consistently across the super system – between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number.
To find out more, see here.
What is an Electronic Service Address (ESA)?
To receive SuperStream data, your self-managed super fund (SMSF) needs an electronic service address (ESA).
An ESA is an alias representing a messaging provider’s uniform resource locator (URL) or internet protocol (IP) address. It ensures you meet all technical requirements for interacting electronically across the super network. An email address is not an ESA.
Please contact us to get an ESA.
For more information on SMSFs employer contributions, please see here.
Due to the recent changes in how the ATO are sending data, we have had to update our ESA provider. We have been doing this periodically over the last twelve months.
You may receive text messages from the ATO when we update your ESA in their system. If you are even in doubt about why you received this text message, please don’t hesitate to reach out to us.