The primary relevance of the 30 June 2017 total super balance is its effect on a member’s eligibility to make non-concessional contributions in the current financial year. Where the amount is over, but close to, the trigger points of $1.4m, $1.5m and $1.6m enhanced eligibility will be obtained if the TSB can be reduced below these points.

SMSFs usually employ cash, not accrual, accounting so investments are shown at their gross value. The TSB generally depends on the cash value of the member’s accounts after investments are sold so it will usually be less than the amounts that have been reported in the 30 June 2017 accounts. This is particularly so where direct real estate is held.

A TBAR adjustment may be made to the 30 June 2017 TSB to reflect this decrease in value. Where this reduces the member’s TSB below the pivot points mentioned, eligibility for an additional $100k non-concessional contribution may result. Unfortunately, the total super balance section of the TBAR form (questions 15 to 24) are totally inadequate for this purpose so it is necessary to involve the ATO manually.

Importantly such an adjustment to the total super balance has no effect on the transfer balance account.