You can claim a tax deduction for a super contribution when your income as an employee is less than 10 per cent of your total income.

Accumulation phase is the period of time that a member is amassing a superannuation investment portfolio in the anticipation of funding your retirement at some point in the future. Earnings are taxed at 15%.

The three year bring forward rule is a superannuation rule that allows a fund member to contribute up to three times the non-concessional contributions cap in a financial year, or over the next two financial years.

The definition of BRP for superannuation purposes includes any freehold or leasehold interest in real property where the property is used wholly and exclusively in one or more businesses.

A concessional contribution is a contribution made by or for you before tax, and may include SG employer contributions, salary sacrificed contributions and personal deductible contributions.

Essentially this is simply a company acting as trustee for the fund.

A person or institution appointed by a testator to carry out the terms of their Will.

An in-house asset is any of the following:

  • a loan to, or an investment in, a related party of your fund
  • an investment in a related trust of your fund
  • an asset of your fund that is leased to a related party.

There are some exceptions such as business real property. In-house assets cannot exceed 5% of your fund’s total assets.

In specie is the process of transferring assets, such as shares, without selling the underlying investment. For example you may wish to transfer some BHP shares held in your personal name to your SMSF. This could then be treated as a contribution.

This is a document created by the SMSF members as trustees of the fund and sets out your fund’s investment objectives and specifies the types of investments your fund can make. Your investment strategy should be in writing and must be reviewed regular and consider insurance for each member of the fund.

An LRBA requires an SMSF trustee to take out a loan from a third party lender. The trustee then uses those funds to purchase a single asset (or collection of identical assets that have the same market value) to be held in a separate trust. If the loan defaults, the lender’s rights are limited to the asset held in the separate trust. This means there is no recourse to the other assets held in the SMSF.

Non-concessional is a special term associated with after-tax super contributions. After-tax contributions are super contributions for which an individual or employer hasn’t claimed a tax deduction.

A Part 8 Associate is defined in Section 70B of the SIS Act. Refer to the following link: http://www.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s70b.html

The period during which a superannuation income stream is currently payable. Earnings on this pension balance are tax free. A Transition to Retirement Income Stream is never in the retirement phase.

The net amount of capital an individual has transferred to their superannuation retirement phase. From 1 July 2017 the pension transfer balance cap is $1.6m.

Preservation age simply refers to the age you need to reach before you are allowed access to your superannuation.

A related party of a superannuation fund is defined in section 10(1) of the SIS Act as meaning any of the following: a member of the fund, a standard employer-sponsor of the. fund, or a part 8 associate of a member or a standard employer-sponsor of the fund.

A reversionary superannuation pension is a superannuation pension which automatically becomes payable to another person (called the ‘reversionary beneficiary’) upon the death of the SMSF member who is receiving the pension.

Salary sacrifice contributions are a type of concessional (before-tax) contribution. These contributions are made before income tax is withheld. Salary sacrificed contributions will generally be taxed at 15% when they are paid into a super fund provided you don’t exceed the contributions cap limit.

The transition to retirement measure allows people who have reached their preservation age to have access to their superannuation benefits without having to retire or leave their job.

To be eligible to make contributions to your super, if you are aged 65 to 74, you must have worked for at least 40 hours over 30 consecutive days in the financial year you wish to make a contribution.