Glossary of Terms

U

Unclaimed Super

Superannuation that you have lost or forgotten was contributed for you. Go to AUSFund to track any lost super in your name, then transfer any found balance to your current superannuation account.

Underweight

Investments with lesser exposure compared with current benchmarks.

Unfranked income/dividends

Income that is transferred from a company to another individual or entity, typically as a dividend, that has no tax credit attached to it, possible because it was double-taxed or it was income the company was not obliged to pay tax on. Dividends from foreign companies is usually unfranked, though foreign tax credits may apply.

Unit Trust

A collective investment vehicle, established under a trust deed, that constantly offers new units and stands ready to redeem existing ones from the owners. Trusts are divided into ‘units’, which are allocated to each investor according to the amount of money they have invested in the trust. The number of units you hold as an investor determines your share of the overall assets and income of the trust. Unit trusts are managed by professionals called ”Fund Managers”. There are hundreds of unit trusts in Australia today, some investing in specific asset types and others in a spread of assets.

A distinguishing feature of unit trusts is that if they distribute 100% of their income, the trust pays no tax. The income is taxable in the hands of the unit holder. Income can include interest, rents, dividends, capital gains and foreign income. Any tax concessions associated with this income, such as imputation credits, foreign tax credits, and tax-free or tax deferred income, flow through to you in association with the distribution.

If you invest in Unit Trusts, you will need to enter details of income and tax concessions in Mclowd’s Trust Distributions screen under Taxable Income at the end of each financial year.

Unlisted

Shares or fund unit that are not available for purchase or sale through the Australian Stock Exchange.

Unlisted Property Trusts

Collective investment vehicles that own a portfolio of real property through the trust’s manager, as opposed to listed property trusts which can be bought and sold on the stock exchange.

Unrestricted non-preserved benefits

Unrestricted non-preserved funds can be withdrawn from your fund at any time, without you having to satisfy release conditions. Tax may be payable on the withdrawal, however, and you can only withdraw the net amount after tax is deducted.

Most superannuation held by Australians is preserved, meaning benefits are not accessible until the member reaches preservation age, and retires. Your preservation age depends on your date of birth, and may be anywhere between 55 years (if you were born before July 1960) to 60 years (if you were born on or after 1st July 1964.

 


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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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