Glossary of Terms

N

Name or Code change

A change of a company’s legal name or ASX stock code.

Net Asset Backing

The total shareholder funds in a company (total assets less total liabilities) divided by the number of shares on issue.

Net Asset Value

Total value of all assets of a company, less the total of all liabilities.

Non-Binding Death Benefit Nomination

The nomination by a member of a person to receive the benefit of any funds remaining in their superannuation account(s) upon their death, but worded such that the Trustee(s) have some discretion as to whether to act in accordance with the nomination or to use their own judgement in the distribution of benefits.

Non-Concessional Contributions

Contributions made to super from a person’s after-tax income. Also referred to as post-tax contributions and after-tax contributions.

Non-Preserved Amount

Amounts that can be withdrawn from super at any time and are not subject to preservation rules. Restricted non-preserved amounts become unrestricted non-preserved amounts on cessation of employment.

No TFN tax offsets

When you make an investment that may yield taxed returns, you may be asked to quote your personal Tax File Number (TFN). If your fund receives income that is taxed at a higher rate because your TFN was not quoted, your fund may be entitled to claim a refundable tax offset for the tax paid in a past year where:

  • the tax was paid on an amount of no-TFN contributions income of the fund, and
  • the amount of no-TFN contributions income was a contribution made to the fund to provide super benefits for an individual who, in the current year, has quoted for superannuation purposes their TFN to the fund for the first time.

The No-TFN tax offset can only be claimed for tax paid in an earlier year on no-TFN contributions income. A fund is entitled to claim a tax offset in the year a member provides their TFN to the fund (provided that occurs within the 3 years following the year in which the no-TFN contributions tax liability is incurred by the fund).

You cannot pay no-TFN contributions tax for a contribution and claim a tax offset for that same contribution in the same income year.

 

 


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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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