Accumulation benefit |
|
A superannuation benefit largely determined by the amount of contributions made and the investment earnings on those contributions. |
|
Adjusted taxable income (ATI) |
|
In broad terms, ATI is the sum of your taxable income for a financial year plus any surchargeable contributions paid to a superannuation fund in respect of you for that financial year plus any reportable fringe benefits provided to you in that financial year. It can also include certain components of eligible termination payments paid by your employer. The rules governing the calculation of ATI are very complex and you are encouraged to obtain independent financial advice to calculate your own ATI. |
|
Average weekly ordinary time earnings (AWOTE) |
|
AWOTE is a measure of wage and salary levels. The Government uses movements in AWOTE as a way of removing the inflationary impact from various superannuation calculations. |
|
Complying superannuation fund |
|
A superannuation fund which qualifies for the concessional tax rates. Under legislation, only a regulated superannuation fund which meets the operational standards set down by the government can be a complying fund. If a fund is not a regulated superannuation fund and/or is non-complying, it is ineligible for the taxation concessions |
|
Concessional contributions |
|
Generally refers to those contributions that are included in the assessable income of a superannuation fund. |
|
|
Concessional contributions cap |
|
From 1 July 2007 the maximum amount of contributions that can be contributed in respect of a member without a tax penalty being imposed. For 2008/2009 the cap is $50,000. The cap is indexed in $5,000 in line with movements in average weekly ordinary times earnings (AWOTE). |
|
Defined benefit |
|
A defined benefit is determined by a formula. This formula may be linked to your salary and length of membership in your company's superannuation arrangement. |
|
Employee contributions |
|
The money contributed by an employee to a superannuation fund or RSA. Employees can be required as a condition of employment to commit a percentage of their salary to superannuation or they may voluntarily make contributions. Also called member contributions |
|
Employer contributions |
|
The money contributed by an employer on behalf of employees, to a superannuation fund or RSA. In most cases, the contributions are tax deductible to the employer (up to limits). The Superannuation Guarantee legislation requires employers to make minimum contributions for most employees. |
|
Gainfully employed |
|
Employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment. |
|
Government
co-contribution |
|
A contribution made by the government to a person's superannuation account |
|
Index |
|
A numerical measure of price movement in financial markets. |
|
Member contributions |
|
Contributions made by or on behalf of a member of a fund other than those made by the employer. |
|
Nomination of beneficiary |
|
A member may complete a form which advises trustees of his/her wishes regarding payment of death benefits (what proportion to pay to whom). However, the person or people nominated on the form will not necessarily receive the benefits. The trustees must be satisfied that they have considered all appropriate beneficiaries before deciding to whom the benefits should be paid. Since 31 May 1999, trustees may elect to make provision for 'binding nominations of beneficiaries'. Rules apply in relation to who can receive a superannuation benefit and to ensure that the nomination is current. The nomination will not be binding on the fund trustee unless it complies with strict provisions set out in the SIS Act. |
|
|
Non-complying |
|
Opposite of complying. For a superannuation fund this means it fails to meet the necessary standards and conditions prescribed by the government and therefore fails to qualify for concessional tax treatment. Funds can be non-complying either through choice or because there is a shortcoming in their operation |
|
Non-concessional contributions |
|
Are contributions to which noone is entitled or receives a tax deduction for. They are referred to as after tax contributions. |
|
Non-concessional contributions cap |
|
Is the maximum amount of non-concessional contributions that can be made in respect of a fund member. Contributions in excess of the cap are subject to a tax and must be withdrawn from the superannuation system. |
|
Participation schedule |
|
A part of the Trust deed that governs the design of your superannuation arrangement. |
|
Plum |
|
Plum Financial Services Limited, the administrator of the Plum Superannuation Fund. |
|
Plum Member services consultants |
|
Available to answer your general investment and superannuation questions. They can also help put you in touch with a financial adviser. |
|
Plum personal plan |
|
The Fund into which you can transfer your benefits upon terminating service with the company's superannuation arrangement. |
|
|
Preservation age |
|
The age at which the member can gain access to preserved benefits which have built up in a superannuation fund, ADF or RSA provided the member has permanently retired from the workforce. The preservation age is gradually increasing from 55 years.
Persons born | Preservation age |
| After June 1964 | 60 |
| July 1963-June 1964 | 59 |
| July 1962-June 1963 | 58 |
| July 1961-June 1962 | 57 |
| July 1960-June 1961 | 56 |
| Before July 1960 | 55 |
|
|
Rollover |
|
Paying a lump sum superannuation benefit from one superannuation fund into another superannuation fund, approved deposit fund or retirement savings account.
The Plum Superannuation Fund is an ideal way to streamline all your superannuation investments into one superannuation account. To arrange to have your superannuation streamlined contact a Plum Member Service Consultant.
A rollover means paying a superannuation benefit or other employer termination payment to a complying superannuation fund, approved deposit fund, retirement savings account or other complying arrangement. |
|
Salary sacrifice |
|
An arrangement between an employer and an employee which involves the employee giving up a part of his/her pre-tax salary in exchange for having the employer provide an alternative benefit, such as superannuation contributions. |
|
Service |
|
Continuous service with the employer in years and complete months (unless otherwise stated). |
|
|
Superannuation |
|
A long-term savings arrangement which operates primarily to provide income for retirement. Superannuation savings are usually made through trust funds. If these funds meet prescribed government standards they are eligible for tax concessions. Retirement savings may also be made through RSAs. Other tax benefits are also available for superannuation contributors/recipients. Superannuation is a key element in the government's long-term objective to move retired Australians away from dependence on the age pension and increasing the level of national savings. |
|
Trust deed |
|
The legal document that sets out the rights and obligations of members, your employer and the Trustee. The Participation Schedule is part of the Trust deed. |
|
Trustee |
|
The Trustee is responsible for the general operation of your superannuation arrangement. |
|
Unit price |
|
Broadly, the Unit price reflects the net assets of the investment option (assets less expenses and liabilities) divided by the number of units on issue. |
|
Voluntary employer contributions |
|
Employer contributions which are not mandated employer contributions |
Glossary of terms
