Term
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Description
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Salary sacrifice contributions
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When you arrange for your employer to pay all or part of your before-tax salary into your super account for you. These contributions are treated as employer contributions and count toward your concessional contributions cap.
From 1 January 2020, salary sacrifice contributions will not:
- reduce the ordinary time earnings based on which your employer calculates your super entitlement
- count towards the amount of super guarantee contributions that your employer is required to make for them to avoid the super guarantee charge.
Salary sacrifice contributions are reportable employer super contributions.
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Section 20C notice
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A notice we send to super funds when there are reasonable grounds to believe a former temporary resident hasn’t claimed their super from the fund.
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Self-assessment
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The assessment system for indirect taxes allows the majority of taxpayers to self-assess their tax-related liabilities and tax-related entitlements through the lodgment of the relevant return for a tax period.
On lodgment, we are treated as having made an assessment for the reported tax period and the return is deemed to be a notice of assessment for that tax period. The assessment is worked out in accordance with the information set out in the return.
For income tax, we issue a notice of assessment based on the information provided in your income tax return. You have an obligation under the law to make sure you have shown all your income and only claimed legal deductions and tax offsets.
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Self-managed superannuation funds (SMSFs)
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A complying super fund which meets all of the following conditions:
- The number of members is no more than 4 (before 1 July 2021) or no more than 6 (on or after 1 July 2021).
- Each individual trustee of the fund is a fund member (see note).
- Each member of the fund is a trustee.
- No member of the fund is an employee of another member of the fund, unless those members are related.
- If the trustee of the fund is a body corporate, each director of the body corporate is a member of the fund.
There are additional conditions for single member SMSFs and funds in which a member is unable to act as trustee because of death or disability.
Note: Some state and territory laws restrict the number of trustees a trust can have to less than 6. As an SMSF is a type of trust, it is important that clients seek professional advice to help understand if their SMSF is impacted by these restrictions. Alternatively, they could restructure/structure their SMSF to have a corporate trustee, where each member is a director of that corporate trustee.
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Seminars
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We run free seminars for small business operators. They provide a general overview of the various taxes which may affect their business.
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Separate net income (SNI)
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Separate net income (SNI) is all the income your dependant received while you maintained them. Before the 2009–10 income year, SNI was used as the income test for tax offsets relating to dependants. From the 2009–10 income year, adjusted taxable income (ATI) is used for this purpose.
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Serious hardship
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When a person is having difficulty in meeting their basic living costs.
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Service providers (intermediaries)
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A term used to collectively describe entities that assist super funds and employers in processing super transactions (e.g. payroll software providers, outsourced payroll providers, clearing houses, message handlers and super fund administrators).
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Set-on
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An additional payment made by the client to cover an underpayment relating to the previous excise liability period.
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Set-off
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The payment of a refund made by reducing a payment relating to a future excise liability.
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Settlement
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The process of lodging a liability statement and making a payment for excise duty.
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Settlement period
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The nominated time period (currently weekly) allowed for clients with a settlement permission to enter goods for home consumption prior to lodging a liability statement and making the corresponding payment of excise duty.
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Settlement permission
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An approval granted to clients to deliver product into home consumption throughout a nominated time period (settlement period) and pay excise duty the first working day after the end of that settlement period.
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Share
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A right of ownership in a company.
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Shareholder
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Someone who owns shares.
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Shortfall exemption certificate
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If you have more than one employer you can apply for a shortfall exemption certificate from us if your employer contributions will cause you to exceed the concessional contributions cap.
The certificate means one or more of your employers will not need to pay super guarantee (SG) contributions for you for up to 4 quarters in one financial year. You still need to receive SG contributions from at least one employer for each quarter.
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Simplified tax system (STS)
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An alternative method of determining taxable income for eligible small businesses with straightforward financial affairs. It began on 1 July 2001. From the 2007–08 income year, the STS ceased to exist. It was replaced with the small business entity provisions. The concessions previously contained in the STS are still available to businesses that meet the small business entity test.
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Small business entity
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An entity that operates a business with an aggregated turnover of less than $10 million.
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Small business superannuation clearing house
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The superannuation clearing house is a free online super payments service that can be used by employers with 19 or fewer employees or have an annual aggregated turnover of $10 million or less, to pay super contributions in one transaction to a single location.
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Small employer
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An employer with 19 or fewer employees.
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Small lost-member account
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A super account that is both of the following:
- a lost member account with a balance less than $200
- not a defined benefit fund.
In most cases, funds must report and pay these accounts to us as unclaimed super.
You can generally have the benefit paid out to you tax-free or transfer it to another super account you hold.
See Superannuation and unclaimed super.
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SMSF auditor
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A person must be registered as an approved SMSF auditor with the Australian Securities and Investment Commission (ASIC) before they can audit a self-managed super fund (SMSF).
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SMSF messaging provider
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Entities that simplify how SMSFs can receive employer contribution messages arriving via a secure electronic distribution network (in line with SuperStream obligations).
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Sole trader
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A person wholly owns and who operates a business.
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Source documents
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The original documents that record your business transactions.
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Special value (SV)
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The modified value of a capped defined benefit income stream.
For a lifetime pension or lifetime annuity the special value equals the annual entitlement multiplied by 16.
For life expectancy and market linked products, the special value equals the annual entitlement multiplied by the remaining term.
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Special circumstances – exceeding contributions caps
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If your contributions for a financial year exceed or will exceed your contributions cap due to special circumstances, you can apply to the Commissioner to make a determination so that some or all your contributions are disregarded or allocated to another year.
To be considered special circumstances these conditions must be met:
- There is something out of the ordinary in your case.
- The circumstances have resulted in unfair, unintended or unjust outcomes.
- The contributions were made gradually over the course of your life.
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Splitting applicant
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A member of a super fund or retirement savings account (RSA) holder who makes a contributions splitting application to their fund's trustee or RSA provider to split their splittable contributions into their spouse's super account.
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Spouse splittable contribution
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A contribution to a regulated super fund on or after 1 January 2006, or an allocated surplus contribution amount that is allocated on or after 1 January 2006.
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Spouse
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Your spouse includes another person (of any sex) who:
- you were in a relationship with that that was registered under a prescribed state or territory law
- although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.
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Spouse contributions
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Contributions you make to a super fund or retirement savings account holder on behalf of your spouse. You may be entitled to a tax offset if you make these contributions. Spouse contributions count as non-concessional contributions for the receiving spouse.
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Standard business reporting (SBR)
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SBR is designed to be a standard approach to online or digital record-keeping and to simplify reporting to government. It allows tax professionals and businesses with an ABN to prepare and submit reports directly from their business software – this means they don’t have to log into different systems.
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Statement of account (SOA)
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A statement of account (SOA):
- provides a list of payments and transactions processed on your account during the statement period
- shows the current account balance and any amounts that are overdue.
The SOA is also used to deliver a cheque, payment slip or advice of EFT payment made by us.
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Statement of release authority
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After a superannuation provider has released an amount in accordance with a release authority or a transitional release authority, the entity must report details of the payment of the amount to us and the individual within 30 days of making the payment.
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Statutory income
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Income that is not ordinary income and that you include in assessable income because of a specific rule in the tax law. For example, a net capital gain is statutory income. If a receipt is classed as both ordinary income and statutory income, the statutory rule prevails.
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Stock
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Items which a business produces, manufactures, acquires or purchases for manufacture, sale or exchange.
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Stocktake
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The process of working out the value of stock currently on hand. A stocktake is often used to help calculate taxable income.
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Stop time
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The stop time is the time at which an income stream of which you were a retirement phase recipient stops being a retirement phase superannuation income stream.
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Structured settlement (personal injury payments)
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Personal injury payments a member contributes towards an accumulation or retirement phase super interest.
A debit arises in your transfer balance account when a structured settlement contribution is made or when you start to have a transfer balance account (whichever is later).
For this debit to arise, the contribution must be made to the fund within 90 days of being received or the structured settlement order coming into effect (whichever is later).
You must notify the super provider using the approved form before or when making the contribution.
See structured settlement for more information.
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Student financial supplement scheme (SFSS)
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A voluntary loan scheme that was to help tertiary students cover their expenses while they studied. Although this scheme closed on 31 December 2003, we continue to administer repayments.
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Student start-up Loan (SSL)
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A voluntary loan available to eligible students in higher education who receive Youth Allowance, Austudy or ABSTUDY Living Allowance. We administer repayment of the loan.
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Study and training support loans
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The government provides financial assistance (in the form of loans) to people undertaking higher education, trade apprenticeships and other training programs. We administer repayment of the loan.
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Substantiate a claim
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Producing records such as receipts to support your claim.
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Super co-contribution
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A government measure to increase super savings. If you are eligible and make personal (after-tax) contributions to your super, the super co-contribution is paid into your super account (see Super co-contribution).
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Super fund
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We use this term to refer to a:
- complying super fund
- public sector super scheme (regulated or exempt public sector super scheme)
- complying approved deposit fund
- retirement savings account.
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Super guarantee charge (SGC)
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A charge imposed under the Superannuation Guarantee Charge Act 1992 on employers who do not make the minimum super guarantee contributions required on behalf of their eligible employees.
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Super guarantee contributions (SG)
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The amount of super an employer must contribute on behalf of their eligible employees. The rate is currently equal to 9.5% of an employee's ordinary time earnings and will be gradually increased to 12% from 1 July 2025.
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Super Income Stream
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An income stream supported by superannuation savings that provides for retirement.
Most people have a choice of taking their super as an income stream or as a lump sum.
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Super TFN integrity check service (SuperTICK)
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An online service that improves the integrity of data used by super funds when meeting their super obligations (such as processing rollover requests).
SuperTICK allows a fund to check a member’s details, including their tax file number, against ATO records.
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Superannuation
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A system where money is placed in a fund to provide for a person's retirement. Often shortened to 'super'.
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Superannuation administration stakeholders group (SASG)
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The group brings together the ATO and representatives of the super industry to identify, discuss and jointly resolve significant administrative issues affecting the operation of the superannuation system.
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Superannuation clearing house
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An external service provider that arranges the sending of super data and payments to funds on behalf of an employer.
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Superannuation holding accounts (SHA) special account
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Before 30 June 2006, employers used the SHA special account to deposit super guarantee contributions for their employees.
The SHA special account (previously known as the 'superannuation holdings accounts reserve') is administered by the ATO.
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Superannuation income stream
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A superannuation income stream in the retirement phase. Generally a right to receive a periodic payment from superannuation interest, for example, a pension or annuity.
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Superannuation income stream benefit
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Each payment an individual receives under a superannuation income stream.
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Superannuation income stream provider
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A trustee of a super fund, an RSA provider, a trustee of an approved deposit fund or a life insurance company.
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Superannuation Industry (Supervision) Act 1993
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This legislation provides prudential standards for super funds. The legislation is administered by 3 regulators: us, Australian Securities and Investments Commission (ASIC), and Australian Prudential Regulation Authority (APRA). We are solely responsible for the administration of self-managed super funds (SMSFs).
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Superannuation interest
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An interest in a super fund, an interest in an approved deposit fund, an RSA or an interest in a superannuation annuity.
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Superannuation intermediary
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An intermediary is authorised by the provider to give the statement on behalf of the provider being reported for.
An intermediary may be:
- a super administrator
- a tax agent
- an accountant
- an employee of the provider
- any other properly authorised legal entity.
It may also be the provider itself lodging on its own behalf.
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Superannuation pension or annuity tax offset
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If you are receiving a rebatable pension or annuity, you may be eligible to claim all or part of the pension tax offset.
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Superannuation provider
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The provider is the particular super fund, ADF, RSA or life insurance company that holds the account for the member, rather than the trustee or RSA provider with the obligation to report.
A super fund includes all public sector super schemes, regardless of whether they are administered by the Australian Prudential Regulation Authority (APRA), and regardless of whether they are constitutionally protected.
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Superannuation services
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Commonly referred to as EmployerTICK and SuperTICK, previously referred to as enabling services. These ATO services enable employers and funds to check the details of an employee or member before they send a contribution or process a rollover request.
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Superannuation surcharge
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A surcharge (tax) of up to 15% was imposed on certain super contributions, specified rollover amounts, and termination payments which were made before 1 July 2005.
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SuperMatch
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A service that enables APRA-regulated funds to consolidate member accounts.
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SuperStream
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SuperStream is the way businesses must pay employee superannuation guarantee contributions to super funds. With SuperStream, money and data are sent electronically in a standard format.
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SuperStream benchmarking report (SRF711.0)
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The report is developed from data collected by APRA that contains ATO analysis and interpretation of SuperStream benchmarking data which is used to measure SuperStream’s success.
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SuperStream Readiness and Implementation (SSRI)
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A project where we work with industry and other stakeholders to test and prepare for SuperStream implementations.
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Supplement loan scheme
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Loan provided to tertiary students who are eligible for either Austudy or ABSTUDY.
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Supplies
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Supplies include the goods and services sold in your enterprise. They also include many other transactions such as when you provide advice or information, lease out commercial premises or provide hire equipment. Not all supplies are taxable supplies.
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SV just after commutation
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SV just after commutation is the special value, worked out just after the superannuation lump sum is paid, of the superannuation interest that supports the capped defined benefit income stream.
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SV just after event
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SV just after event is the special value, worked out just after the loss or payment reduces the value of the superannuation interest that supports the capped defined benefit income stream.
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SV just before commutation
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SV just before commutation is the special value, worked out just before the superannuation lump sum is paid, of the superannuation interest that supports the capped defined benefit income stream.
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SV just before event
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SV just before event is the special value, worked out just before the loss or payment reduces the value of the superannuation interest that supports the capped defined benefit income stream.
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