{"id":8185,"date":"2018-03-20T10:45:25","date_gmt":"2018-03-19T23:45:25","guid":{"rendered":"http:\/\/www.dbalawyers.com.au\/?p=8185"},"modified":"2019-08-14T14:05:04","modified_gmt":"2019-08-14T04:05:04","slug":"total-superannuation-balance-milestones","status":"publish","type":"post","link":"https:\/\/www.dbalawyers.com.au\/contributions\/total-superannuation-balance-milestones\/","title":{"rendered":"Total superannuation balance milestones"},"content":{"rendered":"

Daniel Butler<\/strong><\/a>, Director and William Fettes<\/a><\/strong>, Senior Associate, <\/em>DBA Lawyers<\/em><\/p>\n

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The total superannuation balance (\u2018TSB\u2019) is one of the most important new concepts introduced as part of the major superannuation reforms that broadly came into effect on 1 July 2017. Many superannuation obligations and rights depend on a member\u2019s TSB: broadly the total amount a person has in all Australian superannuation funds, including amounts in pension phase and accumulation phase. This article aims to highlight the main TSB milestones that individuals and advisers need to be aware of under the new super rules.<\/p>\n

TSB milestone #1: $500,000<\/h3>\n

Eligibility for the five year carry forward of unused concessional contributions cap<\/strong><\/em><\/p>\n

Broadly, if an individual\u2019s total superannuation balance just before the start of the relevant financial year (\u2018FY\u2019) is less than $500,000, they may be able to access an increased concessional contributions (\u2018CCs\u2019) cap where the individual has not fully utilised their CC cap for one or more of the previous five FYs effective from 1 July 2018. Further details can be found in s\u00a0291-20 of the Income Tax Assessment Act 1997<\/em> (Cth) (\u2018ITAA 1997\u2019).<\/p>\n

It should be note that the $500,000 figure is not subject to indexation.<\/p>\n

TSB milestone #2: $1,000,000<\/strong><\/h3>\n

Self managed superannuation fund (\u2018SMSF\u2019) event-based reporting<\/strong><\/em><\/p>\n

Generally, SMSFs are not required to report under the Australian Taxation Office\u2019s (\u2018ATO\u2019s\u2019) transfer balance account report (‘TBAR’) regime on a compulsory basis until 1 July 2018. Though it should be borne in mind that some SMSFs may wish to commence voluntary reporting earlier than this date where members are subject to other TBAR transactions in respect of their APRA-regulated funds which have already commenced real-time reporting.<\/p>\n

Under an ATO administrative concession, the TBAR reporting frequency that applies to SMSFs paying existing (ie, pre-1July 2017) retirement phase pensions depends on the TSB of the fund members. The reporting concession is as follows:<\/p>\n