ato logo

Appendix 3 – Glossary

Last updated 19 December 2016

Accumulation phase funds – funds are considered to be in accumulation phase if no members are receiving income stream benefit payments nor reporting exempt current pension income.

Administration and operating expenses – as referred to in this report include deductible and non-deductible expenses reported at the following SMSF annual return labels: approved auditor fee, management and administration expenses, other amounts and SMSF supervisory levy.

All other assets – are the asset types that make up an insignificant proportion of total asset values. They include insurance policies, debt securities, loans, unlisted shares, collectables and personal use assets, overseas shares, overseas non-residential real property, overseas residential real property, overseas managed investments and other overseas assets as reported on the SMSF annual return.

APRA funds – include corporate, industry, public sector and retail funds. Unless specified as ‘APRA funds with more than four members’, they also include small APRA funds (SAFs) and single-member ADFs.

Benefit payments – refer to member benefits paid out to the member. From 2013, these are reported at two labels, super lump sum payments and super income stream benefit payments and include (but are not limited to) transition to retirement income stream payments.

Borrowings – outstanding borrowings by the SMSF, including accrued interest. These include (but are not limited to) borrowings under a limited recourse borrowing arrangement.

Direct investments – are SMSF investments located in Australia and overseas where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised form. These include but are not limited to) cash and term deposits, debt securities, loans, listed shares, unlisted shares, limited recourse borrowing arrangements, non-residential and residential real property, collectables and personal use assets and other assets.

Employer contributions – are as reported on the SMSF annual return. These are contributions received from employers and includes (but is not limited to) all mandated employer contributions such as superannuation guarantee, awards, agreements or other obligations, salary sacrifice, super guarantee charge shortfalls and amounts transferred to the SMSF for the member from superannuation holding accounts special account (SHA special account).

Full pension phase funds – are a subset of ‘pension phase funds’, in particular where all members are receiving a form of income stream benefit payment (including transition to retirement) and the fund reports exempt current pension income.

Income stream benefit payments – refer to member benefits paid out to the member as an income stream life benefit, transition to retirement income stream, death benefit and other income stream benefits such as (but are not limited to) member’s temporary or permanent incapacity.

Investment expenses – as referred to in this report include deductible and non-deductible expenses reported at the following SMSF annual return labels: investment expenses, interest expense within Australia, interest expenses overseas, forestry managed investment scheme deduction, and insurance premium members.

Inward rollovers – refer to inward amounts received for the member in the form of transfers or rollovers within the superannuation system and may include contribution-splitting superannuation benefits, transfer of benefits as a result of family law obligations and reversionary pension or entitlements.

Lump sum benefit payments – refer to member benefits paid out to the member as a lump sum life benefit, death benefit, terminal medical condition benefit, release authority payments and other lump sum benefits such as (but are not limited to) permanent incapacity, severe financial hardship, approved compassionate payment).

Managed investments – are SMSF investments in other entities that then make subsequent investments on behalf of the SMSF. These include (but are not limited to) listed trusts, unlisted trusts, insurance policies and other Australian and overseas managed investments.

Member contributions – are as reported on the SMSF annual return. These are contributions received from members and include (but are not limited to) personal contributions and small-business exemptions. This item does not include rollovers or transfers from other superannuation entities.

Outward rollovers – refer to member benefits paid out by the SMSF for the member in form of transfers or rollovers within the superannuation system and may include contribution-splitting superannuation benefits, transfer of benefits as a result of family law obligations and reversionary pension or entitlements.

Partial pension phase funds – are a subset of ‘pension phase funds’, in particular where not all members are receiving an income stream benefit payment (including transition to retirement) and the fund reports exempt current pension income.

Pension phase funds – funds are considered to be in the pension phase if at least one member receives an income stream benefit payment (including transition to retirement) and the fund reports exempt current pension income.

Return on assets – as referred to in this report is the estimated investment performance of SMSF's measured as the net earnings divided by average total net assets during the period.

Total expenses – as referred to in this report, include deductible and non-deductible expenses reported at the following SMSF annual return labels: interest expenses within Australia, interest expenses overseas, insurance premiums – members, SMSF auditor fee, investment expenses, management and administration expenses, forestry managed investment scheme expense and other amounts and SMSF supervisory levy.

QC50779