Accrued Benefits

These are the total amounts saved in your superannuation fund so far, it would be expected that every year your accrued benefits would increase as contributions and net income are added.

Accumulation Phase

While you continue to contribute into your superannuation fund towards retirement, you funds are held in what is known as accumulation phase. Then once you retire and are ready to draw a pension stream your benefits change from being in accumulation phase to being in pension phase. The benefits do not actually physically move anywhere; they just have a different status and taxation treatment within the fund.

Allocated Pension

This is a popular type of pension stream that can be drawn at regular intervals (but at least annually) from your self managed superannuation fund once you have satisfied a condition of release, usually retirement after age 55 or upon reaching age 65. Amounts allowed to be withdrawn each year must be between minimum and maximum amounts that are calculated (annually) based on your age and of course the amount of funds that you have in the fund. There is no guarantee with this form of pension that it will last for your entire life time. Upon your death, the balance may be paid to your spouse or other designated financial dependant, either by way of reversionary pension, a new pension stream or a lump sum.

Asset Class

Different assets fall into different categories or classes, with the major ones being cash, shares, fixed interest and property. These can be broken down further into sub categories such as listed or unlisted, Australian or international. As diversity is an important consideration when planning the investment strategy for your fund, trustees should give thought to each of these classes in order to arrive at the best investment portfolio for your current stage of life and eventual retirement needs.

Australian Prudential Regulation Authority (APRA)

APRA is a Federal Government body, established in 1998 to oversee and regulate the financial services industry, including banks, building societies, life insurance, credit unions and most members of the superannuation industry.
It gave over the regulation of self managed superannuation funds to the Australian Taxation Office in 1999.

Australian Securities and Investment Commission (ASIC)

Another Federal Government body, this one mainly deals with Corporation's Law and the Financial Services Reform Act. If your superannuation fund has a corporate trustee, we liaise with ASIC to ensure that the company is formed and maintained to ASIC requirements.

Australian Taxation Office

This Federal Government body probably needs no introduction; however it is important to note that self managed superannuation funds are regulated by the ATO. Complying superannuation funds are entitled to concessional tax rates of 15%, unless the ATO advises the trustees that the fund has become non-complying. If non-complying, the fund will be taxed at 47%. It is crucial therefore, that trustees ensure that their fund is complying at all times. As our current clients know, Premier offers various services to assist in your responsibilities and obligations, but if you are not a client please contact us for an obligation free quotation.