Understand the terms we use

SMSF Advice Terms

Acquisition Date

The date on which the acquirer obtains control of the acquiree.

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Commutation

The process of converting a pension or annuity into a lump sum

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Concessional (Personal) contributions

In relation to super, personal contributions are payments made to a fund from an individual's after-tax salary or other financial source, e.g. investment dividends, inheritance. Also referred to as 'after-tax contributions' or 'non-concessional contributi

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Non-Concessional Contribution

Contributions to a super fund or retirement savings account made after 30 June 1983 for which no tax deductions were allowable. The non concessional contributions component of an Eligible Termination Payment is not taxable

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Ordinary Share

An equity instrument that is subordinate to all other classes of equity instruments.

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Portability

The ability to transfer benefits from one investment or super fund to another.

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Preserved Benefits

Benefits within a super fund that cannot be accessed until the fund member turns 55 and/or retires, or a special circumstance has been met (eg severe financial difficulties or permanent incapacity).

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Rollover

Transfer of super money from one approved super fund to another.

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Self Managed Superannuation Fund (SMSF)

A self managed super fund (SMSF) is a form of retirement savings, controlled by members who act as trustees of their own fund.

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Superannuation

A system where individuals set aside funds during their working life to fund retirement. The Government supports this system by requiring employer contributions on behalf of employees, providing tax concessions and regulatory controls for the benefit of c

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Trust Deed

A document that sets out the rules for the establishment and operation of a fund

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Trustee

The person or company that has the legal responsibility to ensure that the trust or super fund is operated in accordance with the trust deed.

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