SMSF Changes in 2023

From 1 July, 2023

Quarterly Transfer Balance reporting

• SMSF Trustees will need to lodge a transfer balance account report no later than 28 days after the end of the quarter where there are events that affect the member’s transfer balance account, allowing them to manage your transfer balance account and cap.
• SMSF Trustees will have until 28 October 2023 to report all events that occurred in the 2023 income year where they are currently lodging an annual TBAR and annual return.

Paper rollover forms

• The ATO has been providing a temporary relief to allow the processing of rollovers in paper form since March 2022. This relief will end on 30 June.
• SMSFs have been required to make electronic rollovers since 1 October 2021 and were required to get an electronic service address from an SMSF messaging provider.

Superannuation Changes in 2023

From 1 January, 2023

Lower threshold for Downsizer Contributions

• The eligible age to make a Downsizer Contribution has been reduced from 60 to 55.
• You can make a Downsizer Contribution up to a maximum of $300,000 (each spouse) to superannuation from the total proceeds from the sale of your home, within 90 days of receiving the proceeds of sale.

From 1 July, 2023

Superannuation Guarantee will rise to 11%

• Eligible workers will start to receive higher contributions, lifting from 10.5% to 11% from 1 July 2023.

Potential Changes from 1 July, 2023

Increase in Transfer Balance Cap to $1.9M

• The cap dictates the maximum amount that can be moved from superannuation (accumulation) to a tax-free pension phase. Currently, the level is $1.7M.
• The Transfer Balance Cap is generally indexed based on the December CPI rate so it is likely rise from 1 July.