Account Based Pensions
This is a pension paid from a super fund when someone has reached retirement age. These pensions are extremely flexible and tend to be paid in monthly installments. Depending on a person’s age a minimum pension must be taken but there is no maximum. They are extremely popular as they allow members to withdraw lump sum amounts as well as the pension.
A superannuation fund where all of the member’s benefits are a combination of contributions made and income earned less administration costs and taxes paid.
The stage a person goes through prior to them retiring when they are accumulating they retirement assets and building up their superannuation.
Adjusted Taxable Income
Adjusted taxable income is a term used by both the ATO and Centrelink that is applied to a number of tests and thresholds for benefits and tax payable.
For income tax purposes adjusted taxable income is calculated by adding the following to an individual’s taxable income for year:
- reportable fringe benefits
- reportable employer superannuation contributions
- deductible self employed super contributions
- total net investment losses
- total net property losses
- tax free pensions and benefits
- target foreign income
- any child support you pay
Adjusted taxable income used by Centrelink to qualify for the Commonwealth seniors health card uses a simplified formula with the following being added to taxable income:
- foreign income
- total net investment losses
- employer-provided benefits, and
- reportable superannuation contributions
Allocated Pension (AP)
A pension paid prior to the new superannuation system that was replaced by account based pensions.
See Australian Prudential Regulation Authority.
Arms Length Transaction
A transaction between two related or connected parties conducted as if they were unrelated, so that there is no question of a conflict of interest.
This is the income which a person or entity pays tax on. It includes employment, company dividends, interest, distributions from trusts and partnerships, business profit, rental income, taxable capital gains, foreign income, and any other income required to be shown on a tax return.
This is the allocation of a person’s investments over the different asset classes often based on this stage in life or that tolerance to risk.
These are the different types of investments. They include cash, shares, property, fixed interest and alternatives.
See Australian Taxation Office.
Australian Prudential Regulation Authority
The body established in 1998 to regulate and control the financial services industry. The types of businesses regulated by APRA include banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most superannuation funds. Superannuation funds not regulated by it are Self-Managed Super Funds, which are controlled by the ATO.
Australian Taxation Office
The body set up to administer the various Federal taxes, including income tax, capital gains tax, and the goods and services tax, it is also responsible for regulation and control of Self-Managed Superannuation Funds, and the administration of legislation relating to Superannuation Guarantee and Super choice.
Average Weekly Ordinary Times Earnings (AWOTE)
This is the average of full-time adult weekly ordinary time earnings for all persons in Australia. It excludes overtime earned. The increase in this average is a benchmark used when increasing various government thresholds, including those related to superannuation.
Definition of Termssmsfsurvivalcentre2018-09-25T11:02:54+00:00