TBAR Console

Class TBAR Console provides bulk event-based reporting, significantly reducing the complexity brought about by the introduction of Transfer Balance Account Reporting.

Accountants and administrators using Class can now simply generate a single file containing all the reportable events across many or all funds in their business, then export and upload the file to the ATO Tax Agent Portal via the Bulk Data Exchange.

The console automatically records events which need to be reported to the ATO, reducing time and supporting compliance needs for accountants and their clients. The system also automatically handles any record deletions or modifications, such as flagging, that an event has been handled manually.

Supported features:

TBAR console to show all outstanding TBAR records that need to be lodged
Functionality to generate, delete, ignore and amend records
Support file generation to facilitate lodgment through ATO Bulk Data Exchange
Ability to enter and lodge Special Values for Complying, Term Allocated and Flexi Pensions

TBAR Console displaying outstanding records that need to be lodged with the ATO.

Generated TBAR files which can be lodged with the ATO through Tax Agent Portal Bulk Date Exchange. This supports multiple TBAR records to be lodged in one single lodgement and increases efficiency greatly.

FAQs

Question: What events are reportable through TBAR?

Answer: As an SMSF, it is required to report the following events:

30 June 2017 accumulation phase value in some scenarios – please refer to the following sections for more information.
retirement phase income streams in existence just before 1 July 2017
any of the following events that occur on or after 1 July 2017

super income streams that have commenced in retirement phase
some limited recourse borrowing arrangement (LRBA) repayments*
pension commutations
compliance with a commutation authority issued by the Commissioner
personal injury (structured settlement) contributions
super income streams that stop being in the retirement phase, for example, because of the trustee failure to meet the minimum pension payment standards for an income stream.

The 2017-18FY SMSF annual return will provide the capacity for both APV and RPV amounts to be reported in a single lodgment. The TBAR form will not be used for this reporting.

*Not all LRBA repayments are reportable TBAR events:

A credit will arise in the member’s transfer balance account in relation to a payment made by a superannuation provider under an LRBA that was entered into or after 1 July 2017 where the payment will result in an increased value of the retirement phase income streams. Please refer to the LCR 2016/9 for more information.

Question: What is Accumulation Phase Value (APV) and is it reportable through TBAR?

Answer: Accumulation phase interests include any superannuation interests that are not in retirement phase.

Accumulation phase interests include:

accumulation accounts
transition to retirement income streams (TRIS) where the recipient has not satisfied the retirement, reaching age 65, terminal medical condition or permanent incapacity condition of release.
deferred income streams that have not yet become payable and where the recipient has not satisfied the retirement, reaching age 65, terminal medical condition or permanent incapacity condition of release.
non-commutable allocated pensions or annuities where the recipient has not satisfied the retirement, reaching age 65, terminal medical condition or permanent incapacity condition of release.
super income streams that have not complied with the pension or annuity standards or a commutation authority.

The value of an accumulation phase interest (i.e. the accumulation phase value) is:

if the regulations specify a way of valuing the interest, then it will be that value, or
the amount of superannuation benefits that would become payable if the client voluntarily ceased the interest at that time.

For most SMSFs where a member does not have other super interests outside of the SMSF, then the accumulation phase value will be the sum of the member’s accumulation accounts and the closing balances of TRISs if there are any.

The ATO has provided some guidance on the reporting requirement of the 30 June 2017 APV balances for TBAR. Click here and search for APV reporting instructions for more information on the ATO website.

Question: What is Retirement Phase Value (RPV) and is it reportable through TBAR?

Answer: The retirement phase value of a member’s total superannuation balance is the balance of a client’s transfer balance account, adjusted to reflect the current value of an interest in an account-based income stream at the end of 30 June of relevant financial year.

The following retirement phase income streams are included in the balance of a member’s transfer balance account:

account based income streams
capped defined benefit income streams’ (special value used)
deferred superannuation income streams that are retirement phase income streams
transition to retirement income streams that are retirement phase income streams
income streams that are not account based or capped defined benefit income streams, and
death benefit income streams including reversionary income streams (special rules apply).

Valuations for transfer balance account purposes are determined:

on 30 June 2017 for income streams commenced prior to 1 July 2017, or
on the starting day for those income streams commencing on or after 1 July 2017.

Superannuation income streams (other than account based income streams) retain the value attributed to the transfer balance account.

For most SMSFs with only account based income streams, generally, the retirement phase value will simply reflect the current value of those income streams.

For the 2016-17FY, an RPV event should not be submitted. For the 30 June 2017 TSB, transitional legislation is in place under Section 307-230 of the Income Tax (Transitional Provisions) Act 1997, which means that for a retirement phase interest, the transfer balance account balance as at 1 July 2017 is utilised to determine the retirement phase value.

The 2017-18FY SMSF annual return will provide the capacity for both APV and RPV amounts to be reported in a single lodgment. The TBAR form will not be used for this reporting.

Question: Which reportable TBAR events will Class create automatically and which events you need to enter through manual TBAR events?

Answer: The following table will provide a summary:

	Reportable Events Description	Class Function
Common Events	'Pre-existing' superannuation income streams in the retirement phase on 30 June 2017 Special values for capped defined benefit income stream / flexi pension still needs to be entered manually	Automated *
	New income streams in the retirement phase on or after 1 July 2017, including reversionary income streams	Automated
	Commutations of retirement phase income streams	Automated
	Converting of transition to retirement phase income streams (TRIS) into the retirement phase	Automated ^
Less Common Events	Certain LRBA repayments	Manual #
	Personal injury (structured settlement) contributions	Automated
	Child death benefit income stream (including reversionary death benefit income stream)	Automated (if established in Class)
	Income stream stops being in retirement phase	Manual
	Commissioners commutation authority	Manual

* Automated means the TBAR event will be created by Class based on the transaction processed in Class (e.g. Pension
Establishment, Pension Commutation).
^ Class will enhance the functionality to support for the TRIS conversion for TBAR purpose.
# Manual means that users are expected to create a manual TBAR event in Class to report it to the ATO (e.g. LRBA repayments).