What is the meaning of non-concessional?
A Non-Concessional contribution is a superannuation contribution that is made using after-tax dollars. A Non-Concessional Contribution will not incur any tax upon entering a superannuation account. It will also not incur any tax when withdrawn from super, either as a lump sum or income stream, regardless of age.
What is non-concessional loan?
Concessional loans: While non-concessional loans are provided at, or near to, market terms, concessional loans are provided at softer terms. To help distinguish official development assistance from other official flows, a minimum grant element of 25% has been specified.
What does concessional funding mean?
A soft loan is a loan with no interest or a below-market rate of interest. Also known as “soft financing” or “concessional funding,” soft loans have lenient terms, such as extended grace periods in which only interest or service charges are due, and interest holidays.
What is concessionary debt?
Concessional debt is defined as loans with an original grant element of 35 percent or more. Concessional debt is defined as loans with an original grant element of 35 percent or more. Source. World Bank, International Debt Statistics.
What is concessional super?
Concessional super contributions are payments put into your super fund from your pre-tax income and are tax deductable for self-employed people. They include your employer’s super guarantee (SG) contributions. Concessional super contributions are taxed at 15% when they are received by your super fund.
Are concessional loans ODA?
Most ODA continues to be provided in the form of grants. Whereas in the past the face value of both grants and loans was counted as ODA, they agreed that only grants and the “grant portion” of concessional loans would be considered.
What are concessional terms?
A concessional loanis a loan made on more favourable terms than the borrower could obtain in the market place. The concessional terms may be one or more of the following: a lower interest rate below (the most common) deferred repayments. income-contingent repayments.
What does concessionality mean?
The difference in return for a lender between a below market rate loan – or soft loan – and a full market rate loan.
What is a grace period?
A grace period is the period of time after payment is due, but before late fees, interest, or other penalties start to accrue.
What is loan grace period?
A grace period is the time during which the borrower need not make payments on his loan. It is common for even commercial banks to offer grace periods for medium and long term loans, but it is rare for them to do so for short term credit. There are two types of grace period.