The Australian Taxation Office (ATO) has made it clear that real-time reporting for SMSFs is no longer an option, it is necessary. With the introduction of event-based reporting, SMSFs must now lodge Transfer Balance Account Reports (TBAR) quarterly with the ATO. For accountants and advisers, this shift from annual to ongoing reporting can provide a compliance challenge but also a strategic opportunity.
Event-based reporting requires trustees to report any movements in their personal Transfer Balance Account (TBA) to the ATO. The TBAR reports events including:
These events record a credit or debit in the member’s transfer balance account which the ATO uses to assess whether they have exceeded their Transfer Balance Cap (TBC).
Accurate and timely reporting helps prevent unintended breaches of the TBC and assists in avoiding penalties or excess tax liabilities.
From 1 July 2025, the TBC will increase to $2 million. This cap limits how much a member can have in retirement phase where earnings are tax-free. Using TBAR data, the ATO tracks movements between a member’s accumulation and retirement phase in near real-time.
If a member exceeds their TBC, the ATO may issue a determination to:
Case Example: A client commences a $1.9 million account based pension on 1 July 2025, believing they are under the new TBC. However, they have forgotten about a $200,000 pension they commenced in 2017 which has since been exhausted. Without accurate TBAR data, this would trigger a breach. Early reconciliation using SMSF Engine’s daily data feeds can identify these issues before they escalate.
To meet these new TBAR obligations, investments will need to be recorded at their correct market value throughout the year and not just at year-end. Reporting inaccurate TBAR entries can risk breaches and incorrect tax calculations.
Tip: When clients make large commutations or lump sum withdrawals from their pension, review asset valuations before reporting to ensure accuracy and avoid triggering incorrect events.
Why the shift to real-time reporting? The ATO’s goal is to increase transparency, reduce delays and improve fairness in the superannuation system. Previously, breaches of the TBC may not have been identified until the SMSF annual return was lodge, which was often too late to avoid penalties.
With real-time reporting:
Timely data using SMSF Engine’s data feeds provides the opportunity for accountants and advisers to monitor contribution caps, pension requirements and investment activity throughout the year, enhancing client service and reducing the risk of non-compliance.
The shift to event-based reporting changes how SMSFs need to be administered and, how accountants and advisers engage with their clients. The traditional annual model is no longer adequate.
Action Checklist:
How SMSF Engine Supports You
We provide daily investment reporting, real-time TBAR preparation and lodgement, and proactive support to ensure your practice stays efficient and your clients remain compliant.
Our Key Services:
Why It Matters: Up-to-date reporting provides the opportunity to develop more responsive retirement strategies, manage TBC compliance and offer your clients a higher level of SMSF service.
Let’s Work Together
Our team understands the technical and practical sides of real-time reporting. If you’re looking to offer your clients smarter SMSF administration solution without the extra workload, we’re here to help to deliver outstanding client outcomes.
Contact us to explore how our real-time SMSF solutions can support your firm and your clients.
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