Does ECPI continue on my reversionary pension even though it will put me over my Transfer Balance Cap?

With the 1 July 2017 introduction of the $1.6m Transfer Balance Cap came a new obligation on superannuation fund trustees to report certain member “events” to the ATO. These events are reported using a “Transfer Balance Account Report” or TBAR.

A great many retired SMSF members with large superannuation balances adjusted their pension accounts back to $1.6 million on 30 June 2017.

The TBAR system revolves around the reporting of “events”, hence the name “events-based reporting”.

The timing of Transfer Balance Account Reports for SMSFs has been hotly debated ever since the ATO first flagged its view that this should occur outside the normal annual return cycle. The final verdict is now in.