iSUPER® are a group of Chartered Accountants who provide clients with flexibility, transparency and control over their superannuation to drive the wealth and wellbeing outcome they are after. We are trusted to educate, coach and ensure compliance for our clients as they make wise investment decisions to grow their wealth.
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A glossary of common terms
After Tax Contributions See “Non-concessional contributions”
Beneficiary means a person who has a beneficial interest in the fund, in relation to a superannuation fund, a member of the fund.
corporate trustee means a company that acts as a trustee of the fund.
custodian, a person (other than a trustee of the fund) who performs custodial functions in relation to any of the assets of the entity. E.g. the custodian of a holding trust in relation to a property borrowing.
Dependant, in relation to a person, includes the spouse, any child and any person with whom the person has an interdependency relationship.
* Note: this definition applies for the superannuation rules. There is a different definition for tax purposes, which will affect the taxation of certain death benefits.
Employer contributions include the 9.25% of your salary paid as compulsory superannuation contributions by your employer and salary sacrifice contributions.
entity means either an individual, a company, a partnership or a trust.
governing rules, in relation to a fund, scheme or trust, means:
(a) any rules contained in a trust instrument, other document or legislation, or combination of them; or
(b) any unwritten rules; governing the establishment or operation of the fund, scheme or trust.
individual trustee, in relation to a fund means an individual who is one of the trustees of the Fund.
investment strategy the way in which investments will be made by the fund, including types of investments (classes of), desired investment returns, timeframes and liquidity of the fund. There are also statutory requirements that need to be considered in the strategy.
lease arrangement means any agreement, arrangement or understanding in the nature of a lease (other than a lease) to use, or control the use of, property owned by the fund. This would include informal or undocumented leases.
loan includes the provision of credit or any other form of financial accommodation, whether there is a formal agreement or not.
market value, in relation to an asset, means the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if the following assumptions were made:
(a) that the buyer and the seller dealt with each other at arm’s length in relation to the sale;
(b) that the sale occurred after proper marketing of the asset;
(c) that the buyer and the seller acted knowledgeably and prudentially in relation to the sale.
member is a person who has a beneficial interest in the fund or receives a pension from the fund.
Member contributions are contributions made by the member. These may be contributions made before tax (self employed contributions) or after tax (non-concessional contributions).
Non-compliance is failure to maintain the complying status of the fund. The ATO may issue a non-compliance order in the event of serious breaches of the superannuation legislation. Non-compliance can also occur where a fund ceases to meet the definition of an SMSF and fails to rectify the problem. One effect of non-compliance is the loss of the concessional tax treatment for fund assets and income.
Non-concessional contribution are personal contributions paid from after tax money. The person contributing will not get a deduction, however, these contributions are not taxed in the fund when made, unless the non-concessional contributions cap is exceeded. They are also not taxed when ultimately paid out as pension benefits.
(a) a structure, building, aircraft, vehicle or vessel; and
(b) any land or place (whether enclosed or built on or not); and
(c) a part of a structure, building, aircraft, vehicle or vessel or of such a place
rectify, in relation to a contravention of this Act or the Regulations it includes; to put in place safeguards that could reasonably be expected to prevent future contraventions of a similar kind, or in some circumstances, to reverse the contravening transaction
Regulator means ASIC, APRA or the Commissioner of Taxation, depending on which administers the relevant provision. In the case of Self-Managed Superannuation Funds this usually relates to the Commissioner of Taxation.
related trust of a superannuation fund, means a trust that a member or a related party of the fund control, other than an excluded instalment trust of the fund.
spouse, in relation to a person, includes another person who, although not necessarily legally married to the person, lives with the person on a genuine domestic basis as the husband or wife of the person, which includes same sex couples.
Trust deed is the document that creates the super Fund, and contains the rules by which the fund must operate. The trustees must abide by the rules, to the extent they do not conflict with superannuation law. The trust deed may, impose additional restrictions on fund operations, above what is required by law.
trustee, in relation to a fund, scheme or trust, means:
(a) if there is a trustee (within the ordinary meaning of that expression) of the fund, scheme or trust—the trustee; or
(b) in any other case—the person who manages the fund, scheme or trust.
Undeducted Contributions See “Non-concessional contributions”