Australian Business Number - a unique identifying number issued to all entities registered in the Australian Business Register (ABR).
Australian Prudential Regulation Authority - APRA is responsible for regulating certain types of super funds.
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 standards qualify for a concessional tax rate of 15%.
Concessional tax rate
Funds which comply with the Superannuation Industry (Supervision) Act 1993 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%.
A contribution is the money or asset directly contributed by an individual, an employer or another party into a super fund.
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 Fair Work (Registered Organisations) Act 2009 .
In the 'Fund product details' table for APRA regulated funds, if the value in the contributions restrictions column is 'Y' then employers are asked to contact the fund directly before making a contribution as the fund may only be able to receive contributions from specific employers or members.
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.
A non-complying SMSF:
- is not a resident of Australia, or
- has been issued with a Notice of non-compliance because it does not comply with the Superannuation Industry (Supervision) Act 1993 regulatory provisions.
Non-complying SMSFs do not qualify for concessional tax rates. The rate of tax for a non-complying SMSF is 45%.
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 . 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 . Non-complying funds do not qualify for concessional tax rates.
This is the Superannuation Industry (Supervision) Act 1993
Unique Superannuation Identifier (USI)
The USI is a unique identifier used to identify a superannuation product within an APRA regulated fund. The USI may be the APRA regulated fund’s Australian business number (ABN) with 3 additional digits or the APRA regulated fund’s current superannuation product identification number (SPIN).
SMSFs do not have a USI – the ABN acts as the fund identifier.Top