Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p44
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 163729–167401

entity assumes operating expense of a related party, and in return charges a service fee to the related party to recoup the costs of the resource or services they have provided on behalf of the related party.

                                             May be referred to as:

                                                    * intercompany management fee;
                                                    * internal recharge cost;
                                                    * intercompany service fee;
                                                    * intercompany charges; or
                                                    * head office charge.

Rental, repairs and maintenance expenses     Refers to the value of rental expense incurred for using rented equipment and the value of repair and maintenance expenses.

Repairs and maintenance expenses             Refers to the value of ordinary maintenance and repairs that are obliged to be undertaken periodically in order to be able to utilise assets over their expected services lives. They are costs that cannot be avoided if the assets are to continue to be used.

                                             Maintenance and repairs do not change the asset or its performance, but simply maintain it in good working order or restore it to its previous condition in the event of a breakdown.

                                             It excludes: wages and salaries of own employees.

Repurchase agreement (repo)                  Means a contractual arrangement involving the provision of securities or other financial assets (collateral) in exchange for cash with a commitment to repurchase the same or similar collateral at a fixed price either on a specified future date or on demand.

Repo rate                                    Means the percentage difference between the purchase and repurchase price of a security expressed as an annual rate.

Residential land                             Means any vacant land that does not have a dwelling attached but where the construction of a dwelling is allowed under zoning regulations.

                                             It excludes: land where the primary purpose of the land will be for business purposes. Report this under the appropriate business category.

Residential property                         Means residential land and buildings – or parts thereof – that take the form of dwellings or a group of dwellings.

Residual maturity/term                       Means the remaining term to contractual maturity.

Retirement savings accounts (RSAs)           Means low risk/low return capital guaranteed products that are subject to the same restrictions as other superannuation products.  Only an ADI, life insurance corporation or a prescribed financial institution can be approved by APRA to act as an RSA under the Retirement Savings Act 1997.  RSAs are specifically approved non-trustee institutions.

Revaluation                                  Represents:

                                                    * the holding gain and losses arising from changes in market prices of the contracts;
                                                    * accrued interest (e.g. swap coupons); and
                                                    * other changes that are not transactions (such as court-ordered liquidation write offs).

Reverse mortgage                             Means a loan secured by residential property in which repayments are generally deferred and capitalised, with full repayment due when the borrower is deceased, sells the property or moves out of the property.  Generally, the loan can