ATO Assistant Commissioner Superannuation Tara McLachlan has given a speech on “Administration issues under the transfer balance cap”.

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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.

Anderson & Associates

Source: www.ato.gov.au/Media-centre/Speeches/Other/Administration-issues-under-the-transfer-balance-cap/.