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Glossary of terms

Explaination of terms used used on this website.

 

 

Australian
Taxation Office (ATO)

The Australian Taxation Office (ATO) is the regulator of self managed superannuation funds. The ATO also maintains the Lost Members' Register and enforce employer contributions to superannuation funds in accordance with the Superannuation Guarantee legislation.

Complying Superannuation Fund

A superannuation fund is eligible for concessional tax treatment as a complying superannuation fund under Income Tax Assessment Act 1936 (1TAA 1936) Part IX if it satisfied conditions specified in the Superannuation Industry (Supervision) Act:

  • the entity is a resident regulated superannuation fund,
  • the fund is in compliance with the requirements prescribed in the SIS Act; and
  • the trustee has received a notice from the Commissioner of Taxation stating that the fund is a complying superannuation fund, and has not subsequently received a non-complying notice.

Contributions

Contribution is an amount paid into a superannuation fund for a specific member. Contributions are usually paid by employer on behalf of employee as part of the superannuation guarantee. The employee can also make voluntarily contributions into their superannuation or salary sacrifice as part of the investment strategy.

In-house Asset

'In-house asset' is a loan to, an investment in, or lease with, a member of related persons or associates of the fund.

Member

A 'member' of a self managed superannuation fund is a person who has money in the self managed superannuation fund, and deferred his or her entitlement to receive a benefit from the fund or is receiving a pension from the fund.

Regulated Superannuation Fund

A regulated superannuation fund is a superannuation fund that has elected to be regulated under the Superannuation Industry (Supervision) Act. In return for this election, the superannuation fund will be eligible to receive concessional tax treatment as long as it remains a complying superannuation fund.

Rollover

A rollover is an amount of money in a superannuation fund which is paid (transferred) to another superannuation fund.

SIS

is abbreviation for Superannuation Industry (Supervision) Act and subordinagte regulations. These are the main legislative instruments that govern the operation of superannuation funds, including self managed superannuation fund.

SMSF

is abbreviation for Self Managed Superannuation Fund.

Trust Deed

The trust deed is the documentation that forms the governing rules of a superannuation fund. The deed evidences the setting up of the superannuation fund and sets the rules of operation.

The trust deed must (or is deemed to) contain the Superannuation Industry (Supervision) Act covenants.

Trustee

The trustee of a self managed superannuation fund is responsible for ensuring that the fund is properly managed and complies with all the requirements of the Superannuation Industry (Supervision) Act and regulations, and other statutory and legal obligations with regard to the operation of the superannuation fund.

Trustees of self managed superannuation funds must not (and not permitted under SIS to) receive remuneration for duties and services rendered to the fund.