The ATO has provided further information on the reporting in certain circumstances of a member’s Accumulation Phase Value within the Transfer Balance Account Report (TBAR).
SMSFs will need to provide an accumulation phase value (APV) on a transfer balance account report (TBAR) for 30 June 2017 in certain circumstances.
APV is a component of a member’s total superannuation balance which shows the value of the member’s assets in the accumulation phase at 30 June.
This is often different to the account balance of the SMSF member’s accumulation phase assets. This is because it reflects the amount that they would receive if they voluntarily close their account, taking into consideration exit fees, administration fees and realisation costs (NB. accountants – consider tax-effecting accounting where appropriate).
Providing an APV of the assets held for the member is conditional for SMSFs in the 2016-17 financial year. If not provided, the member’s APV will be calculated as the difference between the closing account balance from the SMSF annual return and the value of the member’s transfer balance account for the SMSF at 1 July 2017.
APV reporting for 30 June 2017 is due by 8 September 2018.
When SMSFs need to provide their APV
If the SMSF member has 100% of their interest in the accumulation phase at 30 June 2017, then providing the APV is conditional and only required when the difference between the APV and the closing account balance is not limited of the value of exit fees, administration fees and realisation costs.
If the SMSF member has interests in the accumulation and retirement phase at 30 June 2017, then the APV is mandatory where the member has a capped defined benefit income stream or a flexi-pension in that SMSF. It is also mandatory where the difference between the APV and the closing account balance is not limited to the value of exit fees, administration fees and realisation costs.
Finally, if the SMSF member has 100% of their interest in the retirement phase, then the APV is only mandatory where the member has a capped defined benefit income stream or a flexi pension in that SMSF. The APV value to be supplied is zero.
Reporting changes for 2017-18 FY onwards
To streamline reporting requirements, we have modified the 2017-18 SMSF annual return and added a new label to enable the report of the accumulation phase value. Transfer balance account report forms will not be required to report APV from 2017-18 FY onwards.
Detailed instructions are contained within the instructions of the 2017-18 SMSF annual return.