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.