On 30 August 2018, ATO Assistant Commissioner Superannuation Tara McLachlan gave a speech on Administration issues under the transfer balance cap at the Tax Institute Sixth National Superannuation Conference. She highlighted the following:
• Common events that will need to be reported include:
- the start of new pensions which began to be in retirement phase on or after 1 July 2017; and
- full and partial commutation of pensions on or after 1 July 2017, regardless of whether or the commutation was paid out as a lump sum, retained in accumulation phase or rolled over to another super fund.
• Self managed superannuation funds (SMSFs) do not need to report:
- pension payments made on or after 1 July 2017;
- investment earnings and losses that occurred on or after 1 July 2017;
- when an income stream ceases because the capital has been exhausted; or
- the death of a member – although if the member’s pension was reversionary, reporting of the pension may be required.
• Individuals can use myGov online to see what amounts have been credited to their transfer balance account.
• As multiple transfer balance events occur when individuals have multiple pensions paid from the same fund, it’s important to cancel incorrect events before reporting the correct information, otherwise a duplication can occur.
Other issues mentioned during the speech concerned the treatment of excess transfer balance (ETB) determinations, commutation authorities, partial commutations and minimum pension requirements.
If you would like to know more please contact one of our accountants on 07 4639 1099 or come in and see us at 14 Russell Street Toowoomba.