Glossary - Technical overview - 1

Term	Definition	Related sections
Adjusted taxable income	The sum of an individual’s: taxable income adjusted fringe benefits in Australia target foreign income total net investment losses reportable super contributions tax free social security or DVA pension or benefit for that year* less deductible child maintenance expenditure* * Excluded from the definition of adjusted taxable income for CSHC purposes.	FTB Part A FTB Part B Paid parental leave Child care subsidy LISTO CSHC
Disability superannuation benefit	A superannuation benefit paid to a person because he or she suffers physical or mental ill-health and two legally qualified medical practitioners have certified that, because of the ill- health, it is unlikely that the person can ever be gainfully employed in a capacity for which he or she is reasonably qualified because of education, training or experience	Total and permanent disability insurance Tax treatment of disability benefits
Income for surcharge purposes	The sum of an individual’s: taxable income (excluding the taxable component of a superannuation lump sum taxed at 0%) reportable fringe benefits total total net investment losses, and reportable super contributions (eg salary sacrifice and personal deductible)	Medicare levy surcharge Private health insurance rebate
Rebate income	The sum of an individual’s: taxable income adjusted fringe benefits total net investment losses, and reportable super contributions (see below)	Seniors and pensioners tax offset
Reportable employer super contributions (RESC)	Includes all employer¹ contributions ‘in respect of the income year’² that exceed SG (eg salary sacrifice) to the extent the individual influences: size of the contribution, or the way the amount is contributed so that assessable income is reduced Excludes: employer contributions included in assessable income, and amounts the employer is required to contribute by an industrial award or rules of a super fund, and the individual does not have capacity to influence the contribution 1 For the purposes of RESC, ‘employer’ has the expanded meaning given by section 12 of the Superannuation Guarantee (Administration) Act 1992 (with the exception that a person who is paid to do work wholly or principally of a domestic or private nature for not more than 30 hours per week is regarded as an employee in relation to that work for the purposes of RESC). 2 In respect of an income year’ means a contribution may be included in RESC for a financial year irrespective of when it is actually made. For example, salary sacrifice contributions made in respect of the last quarter of 2018/19, but actually contributed by the employer in July 2019 are included in RESC for 2018/19	Spouse contribution tax offset Co-contribution Low income super tax offset Claim tax deductions – personal super contributions
Reportable super contributions (RSC)	The sum of an individual’s: RESC for the income year, and personal super contributions claimed as a tax deduction for the income year	HELP
Retirement phase	The period during which a superannuation income stream is payable to a member who has met a condition of release with a nil cashing restriction. Earnings on income streams in the retirement phase are exempt from tax	Other entity taxation rates TTR pensions Transfer balance cap
Total superannuation balance	The sum of an individual’s: value of accumulation phase interests (including transition to retirement pensions) transfer balance account (excluding account based and market linked pensions credits/debits and personal injury contribution debits) current balance of account based pensions and market linked pensions rollovers in transit between funds less personal injury contributions	Spouse contribution tax offset Carry-forward unused CC cap NCC cap Co-contribution
Transfer balance cap	This is a lifetime limit on the amount of superannuation benefits that can be transferred to the retirement phase to commence an income stream	Spouse contribution tax offset Transfer balance cap

Definitions of spouse, child and interdependency

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