Term
|
Meaning
|
Arm's length
|
Investments must be made and maintained on a commercial basis. A test would be whether a prudent person, acting with due regard to his or her own commercial interests, would have agreed to the terms.
|
Collectables and personal use assets
|
A collectable or personal use asset is an investment in:
- artwork
- jewellery
- antiques
- artefacts
- coins, medallions or bank notes
- postage stamps or first day covers
- rare folios, manuscripts or books
- memorabilia
- wine or spirits
- motor vehicles
- recreational boats
- memberships of sporting or social clubs.
|
In-house asset
|
An in-house asset of an SMSF, after 11 August 1999, is either:
- a loan to, or an investment in, a related party of a fund
- an investment in a related trust of a fund
- an asset of a fund, other than business real property, that is subject to a lease or lease arrangement between the trustees of an SMSF and a related party of the fund.
|
Market value
|
It is the amount that a willing buyer of the asset could reasonably be expected pay to acquire the asset from a willing seller if all the following assumptions were made – that the:
- buyer and the seller dealt with each other at arm's length in relation to the sale
- sale occurred after proper marketing of the asset
- buyer and the seller acted knowledgeably and prudentially in relation to the sale.
|
Part 8 associate of an individual
|
A Part 8 associate of an individual (whether or not the individual is in the capacity of trustee) includes, but is not limited to:
- a relative of the individual
- other members of the SMSF
- if the member is a partner in a partnership, other partners in the partnership and the partnership itself
- if the partnership mentioned above contains other individuals, the spouse or child of those individuals
- a company that is sufficiently influenced by, or in which a majority voting interest is held by, an individual and/or their Part 8 associates.
|
Related party
|
A related party of an SMSF includes:
- member of the fund
- standard employer-sponsor of the fund
- Part 8 associate of a member or standard employer sponsor of the fund.
|
Relative
|
A relative of an individual means a:
- parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the individual or of their spouse
- spouse of the individual or of any other individual referred to above.
|
Total super balance
|
The value of all of an individual's superannuation interests.
|
Transfer
|
Includes:
- acquisition of an asset by way of a contribution to or purchase by the SMSF
- disposal of an asset by way of a payment of a super benefit or a sale by the SMSF.
|
Transfer balance cap
|
The maximum amount of capital that can be transferred into the tax-free retirement phase of super.
|
Transitional CGT relief
|
Provisions that provide relief from the tax consequences for capital gains accumulated before 1 July 2017, where they would have been exempt if realised prior to a fund taking action to comply with the transfer balance cap or changes to the treatment of transition-to-retirement income streams that take effect from 1 July 2017.
|
