Australia Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Australia. Updated for 2026.
D
Division 293 Tax
TaxAn extra 15% Australian tax on the lesser of concessional super contributions or the amount by which Division 293 income plus contributions exceeds A$250,000.
View full definition →DASP
RetirementA payment of eligible super to a temporary resident after departure and visa expiry/cancellation; a former working holiday maker generally faces 65% withholding on the taxable component.
View full definition →N
New Home GST Rebate
TaxThere is no general Australian consumer “new-home GST rebate”: GST-registered builders may claim eligible input credits, while homebuyers may qualify for separate state grants.
View full definition →Novated Lease
TaxA three-party Australian car-leasing and salary-packaging arrangement; pre-/post-tax payments, fringe-benefits tax, fees and residual value determine its true cost.
View full definition →W
Australian financial terms for the payday super and working holiday era
From July 2026, Australia's superannuation system includes payday frequency contributions, a 15% lower resident income-tax bracket for 2026–27 under the later tax-cuts act (Stage 3 began in 2024–25), and specific tax schedules for working holiday makers. Division 293 continues to apply an extra 15% on high-income super contributions above $250,000. These terms cover the 2026-27 rules that affect your super, tax, and salary packaging.
Division 293 and the concessional contributions cap
The general concessional super cap rises to A$32,500 from July 2026. Contributions are generally taxed at 15% inside the fund. Division 293 adds 15% only on the **lesser** of eligible concessional contributions and the amount by which Division 293 income plus those contributions exceeds A$250,000; near the threshold only part can face the extra tax. At high incomes the combined contribution tax may still be below marginal income tax, but individual circumstances and contribution caps matter. [ATO](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners) gives the formula.
Working holiday maker tax rates and DASP
Subclass 417 and 462 visa holders pay a flat 15% on the first $45,000 in earnings (no tax-free threshold). Employers must be ATO-registered as WHM employers to apply this rate. When leaving Australia permanently, working holiday makers can claim their super through DASP, but face a 65% withholding tax on the taxable component.
Novated leasing and salary packaging
A novated lease uses a three-party employee/employer/lessor agreement and may mix pre-tax and post-tax payments; fringe-benefits tax, fees, residual value and running costs determine net value. Eligible electric cars can be FBT-exempt if ATO conditions are met and no LCT was payable; the 2026–27 fuel-efficient threshold is A$91,661. New PHEV arrangements generally lost the exemption from 1 April 2025. There is no universal marginal-rate saving on every cost or 30–40% net discount. [ATO](https://www.ato.gov.au/law/view/pdf/afs/afs_ev_fbt.pdf) gives the conditions.