Glossary of Terms



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Financial Hardship

Fund members suffering financial hardship can request an early release from their superannuation savings up to an amount of $10,000 to provide temporary relief. To claim financial hardship, you must have been in receipt of a Commonwealth Income Support Payment for a minimum of 26 weeks (six months) continuously. Further eligibility criteria may apply.

Financial Periods

A specified period for which accounting data is required to be available, or in which transactions might occur. For example, for BAS reporting purposes, a financial period might be a particular month or quarter. In Mclowd, financial periods are typically specified as periods between July 1 and June 30 in any given year. For valid recording and reporting, you must ensure that all transactions are recorded in the financial period in which they occurred, and that you select the correct financial period when producing reports. When tax returns and member distributions are finalized for a particular period, the Mclowd system will facilitate a ”roll over” to close off that year and lock in end of year balances as the opening balances for the next financial period. You can roll back to correct an error in a previous year and repeat the rollover to update opening balances for the next period.

Fixed Interest

Loans to governments, private companies and banks issued as securities that pay you regular interest over a set term. The principal amount borrowed is repaid when the security matures. See Bond.

Floating Rate Note

A long-term debt security with interest rates adjusted periodically in line with a benchmark rate.

Foreign Exchange Rate

The rate at which a country’s currency is converted into the value of another country’s currency.

Foreign Tax Credits

When income is earned in foreign countries, it may be taxed by the country in which the income was earned. Under tax treaties the Australian government has entered into with some nations, Australian tax credits can be claimed for tax paid to foreign nations. These credits are referred to as ”foreign tax credits”.

Franked income (or Franked Dividend)

Income that is transferred from a company to another individual or entity, typically distributed as a dividend, that is received as a tax free distribution. The purpose of this is to avoid double taxation of corporate income. In practice, it means that shareholders in companies receive a share of the company’s net after-tax profit, but also receive a credit for the tax paid that will reduce their own tax obligation or may result in a negative tax obligation delivering a cash refund.

Franking Credit

Another name for an Imputation Credit. See Imputed Credits

Fringe Benefits Tax (FBT)

A tax payable by employers who provide fringe benefits to their employees or to associates of their employees.

Fundamental Analysis

An analysis of investments based on factors such as sales, earnings and assets that are key to the investment performance.

Fund Formation Date

The date on which your Superannuation Fund was first formed, or established. This date should be shown on your Superannuation Fund Trust Deed.





about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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