How to record Transfer Balance Indexation and Adjustments

Overview 

This article will cover how to record Transfer Balance events such as indexation and adjustments in Simple Fund 360. 

For information on specifically entering Opening Balance TBAR adjustments, see: 

• Opening balances for TBAR

Recording Transfer Balance Indexation

The Indexation cap limit has received several updates in recent years, with the most recent cap announced being $2.1 million occurring on 1 July 2026.

Simple Fund 360 will automatically post an updating entry in the TBAR dashboard when you select Close Period, adjusting the cap limit based on the account balances recorded for each member.

The TBAR entry will appear as below:

Funds that have not performed 'Close Period' and require indexation calculations are required to select the ‘Calculate Personal TBC’ button in the TBAR dashboard, triggering the indexation cap limit entry.

In the event the current system calculated cap limit does not agree with ATO provided personal cap limit, users can manually update the cap limit by selecting Edit and editing the indexation entry.

'Calculate Personal TBC' button

From the 2022 Financial year onwards, a Calculate Personal TBC button will appear in the Transfer Balance Dashboard. Clicking this button will re-run the Close Period TBAR Cap Indexation Calculation.
There are potentially 4 scenarios that would require you to use this function:

1. Migrated fund from SF desktop: Given that Simple Fund Desktop will not have the indexation logic implemented, this will look at each members TBAR history and run the indexation calculation.
2. Where you have edited (manually adjusted) the cap indexation entry incorrectly and want to reinstate the system calculation
3. The fund has been finalised and lodged for 2021FY and you need missed an TBAR entry in a prior year, where you do not want to reopen the prior period(s).
4. You have received a new client in the 2022FY

Please note that while these scenarios are directly related to the indexation that occurred on 01/07/2021, the 'Calculate Personal TBC' button can be used for any indexation event up to and including the $2.1 million cap introduced on 1 July 2026.

Recording Transfer Balance Adjustments

To record a manual Transfer Balance Adjustment: 

1. Navigate to the Transfer Balance Dashboard screen.  
    
2. Select the relevant member whose Transfer Balance Cap you want to adjust.  
   
    
3. Next to the member, click + Add Adjustment 
   
    
4. Enter the required details. Under Event Type, you can select Non-Reportable Event if applicable. 
   
    
5. Enter the appropriate Debit or Credit amounts. 
   
    
6. Once all fields are complete, select the green arrow to save. 

Once saved, the member’s Transfer Balance Cap will be updated accordingly. 

Additionally, you may delete or edit the adjustment event if required. 

Non-Reportable Events  

Non-reportable events are adjustments that do not need to be reported to the ATO but still affect the member’s Transfer Balance Cap within Simple Fund 360. Please note that these events, listed as Non- Reportable Events, will not populate in the TBAR Management screen.