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A-C
ABN
Australian Business Number - a unique identifying number issued to all entities
registered in the Australian Business Register (ABR).
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APRA
Australian Prudential Regulation Authority - APRA is responsible for regulating
certain types of super funds.
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Complying SMSF
A complying SMSF:
- is regulated by the ATO
- has been issued with a Notice of compliance.
Complying SMSFs that meet the
Superannuation Industry (Supervision) Act 1993
(SISA)
standards qualify for a concessional tax rate of 15%.
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Concessional tax rate
Funds which comply with the
Superannuation Industry (Supervision) Act 1993 (SISA)
qualify for concessional tax rates. A complying super fund is taxed at 15%.
Non-complying super funds do not receive concessional tax rates. A non-complying
super fund is taxed at 45%.
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Contribution
A contribution is the money or asset directly contributed by an individual, an employer
or another party into a super fund.
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D-M
Directed termination payment
A directed termination payment is a transitional employment termination payment
that you direct the payer to make to a complying super plan or to purchase a super
annuity.
Only employment termination payments meeting transitional arrangements are considered
to be a directed termination payment. The transitional rules may apply to employment
termination payments made between 1 July 2007 and 30 June 2012 if you were entitled,
as at 9 May 2006, to such a payment specified under:
- a written contract
- an Australian or foreign law (or an instrument under such a law)
- a workplace agreement under the
Workplace Relations Act 1996.
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Employment termination payment
An employment termination payment (previously known as an eligible termination payment)
is a lump sum payment made due to your employment being terminated. It can include:
- payments for unused rostered days off
- payments in lieu of notice
- a gratuity or 'golden handshake'
- an employee's invalidity payment (for permanent disability other than compensation
for personal injury)
- payments after the death of an employee.
Employment termination payments do not include:
- payments for unused annual leave or unused long service leave
- the tax-free part of a genuine redundancy payment or an early retirement scheme
payment.
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N-S
Non-complying SMSF
A non-complying SMSF:
Non-complying SMSFs do not qualify for concessional tax rates. The rate of tax for
a non-complying SMSF is 45%.
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Notice of compliance
The ATO will issue a Notice of compliance if it makes a determination that
a fund complies with the
Superannuation Industry (Supervision) Act 1993 (SISA)
. This determination may only be made after an SMSF annual return has been lodged
with the ATO.
Notice of non-compliance
The ATO will issue a Notice of non-compliance if it makes a determination
that the fund has not complied with the
Superannuation Industry (Supervision) Act 1993 (SISA)
. Non-complying funds do not qualify for concessional tax rates.
SISA
This is the
Superannuation Industry (Supervision) Act 1993 (SISA)
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