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Salaried employees and authorised representatives of ANZ, the holder of a Securities Dealers License issued by the Australian Securities and Investments Commission.
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The distribution of a Fund’s investments among various asset classes or sectors (such as shares, property, fixed interest and cash).
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Those investments in which a Trustee is empowered to invest a Fund’s assets.
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The insurance cover that can be provided without detailed medical evidence.
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A measure of the average wage and salary earnings of all employees (full or part time) in Australia. The Australian Bureau of Statistics compiles this information on a quarterly basis.
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A measure of the average wage and salary earnings of employees in Australia. The Australian Bureau of Statistics compiles this information on a monthly basis.
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A market measure used by fund managers as a measurement to assess the risk and return of their portfolios against a comparable mix of assets. For example, the Australian All Ordinaries Accumulation Index is used as a benchmark to assess the performance of Australian share portfolios.
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The amount of money that a member is entitled to receive from a superannuation fund on retirement, death, disablement, or other circumstances specified in the Trust Deed.
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An increase in the market value of an asset, such as shares...
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A CGT (Capital Gains Tax) exempt component arises if a business is sold to fund retirement income.
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A complying annuity satisfies the Reasonable Benefit Limit (RBL) requirements and provides an asset test exempt income stream for social security purposes.
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Only ETPs rolled over before 1 July 1994 can have a concessional component. The concessional component relates to a ‘golden handshake’ paid under an early retirement scheme, or an invalidity or redundancy payment.
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Money paid - either by an employer, an individual or a spouse on your behalf - to a superannuation fund.
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The maximum amount that may be claimed by a taxpayer as a tax deduction in respect of contributions made to a superannuation fund in any one year for a particular member.
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Spreading investments over a number of individual assets, classes of assets, countries or investment managers in order to reduce total investment risk.
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The eligible service period is the number of complete days of employment or fund membership (or combination of both) that relates to your ETP. It is only applicable where part of the termination payment relates to pre-July 1983.
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Contributions, made by a person to a complying superannuation fund to obtain superannuation benefits for their spouse, or on the spouse’s death, the spouse’s dependants, for which the person is not entitled to a tax deduction under section 82AAC of the Income Tax Assessment Act 1936. Eligible spouse contributions do not include contributions made by a person who is the employer of their spouse.
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A payment made by an employer, superannuation fund, rollover fund or retirement savings account. In some cases, you may be able to cash some of your superannuation Eligible Termination Payment, however you will forfeit the tax concessions that would apply if you rolled it over into a superannuation fund.
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Includes company shares, and index and company share derivatives.
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The part of an Eligible Termination Payment that exceeds an individual’s Reasonable Benefit Limit. Excessive components are taxed at the highest marginal rate of income tax.
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Being employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.
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The capacity of an asset to be converted easily and quickly into cash.
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A person who has qualified to join the superannuation fund and who will, in the future, receive a benefit from that fund.
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Your ETP may contain amounts which are non-preserved, these may be restricted or unrestricted. The unrestricted amount can be taken as cash at any time, even if you are still in employment. The restricted non-preserved portion can only be taken as cash under certain circumstances.
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A member who has ceased to be gainfully employed, due to ill-health (whether physical or mental), where the trustee is reasonably satisfied that the member is unlikely, because of the ill-health, ever again to engage in gainful employment for which the member is reasonably qualified by education, training or experience.
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A committee formed with equal representation from employers and funds members.
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The collection of investments of a particular fund or investment manager.
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The post-June 1983 component is the part of your ETP that relates to the period of employment after June 1983. The calculation of this component is simply the amount remaining after you have taken away all other components. It can have both taxed and untaxed elements.
The untaxed element comes from a source where it is not taxed, more commonly Employer ETPs, where as the taxed element normally comes from a source such as a superannuation fund, where contributions tax is paid.
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A post-June 1994 Invalidity Component is the part of your ETP that relates to invalidity payments, if you terminate your employment due to permanent invalidity. This component is tax-exempt, and can be rolled over.
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For tax purposes, your ETP will be split into two components in proportion to the number of days of eligible service before and after 1 July 1983. Any concessional or invalidity components are excluded before the calculation of the pre-July 1983 component. Your pre-July 1983 component is likely to be taxed at low rates, so it is important to ensure that you maximise this component.
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The part of your superannuation benefits that must be maintained either in a superannuation or rollover fund until retirement after your preservation age.
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The age before which a member cannot gain access to preserved benefits.
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The rate of return of an investment, minus the inflation rate over the same period.
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The maximum superannuation benefit a person can receive at concessional (lower) tax rates.
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Earnings rate or yield on an investment.
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Risk relates to the variability of returns. Investments with greater risks are expected to have higher returns.
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Transferring an Eligible Termination Payment to a rollover fund or superannuation fund. Also refers to an amount which has been paid as an ETP within the superannuation system.
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An investment in a deferred annuity, approved deposit, Retirement Savings Account, superannuation fund or immediate annuity.
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Insurance that pays part of a person’s salary in the event of permanent or temporary disablement. Sometimes known as Income Protection Insurance.
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An arrangement between an employer and employee which involves the employee substituting part of their pre-tax salary for an alternative benefit, such as increased superannuation contributions paid by their employer.
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If you are eligible, your employer is required to give you a standard choice form by 29 July 2005, and for new employees, within 28 days of commencing employment.
Once the standard choice form has been submitted, your employer must begin making payments into your nominated super fund within two months.
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Superannuation is the money saved during your working life to provide you with income in your retirement to help you achieve the lifestyle you want.
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Legislation which requires employers to provide a minimum level of superannuation contributions for most employees.
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The Parliamentary Act, which includes prudential standards for superannuation funds. The Act commenced on 1 July 1994.
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The transfer of money from one investment option to another.
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TPD is defined to mean that a member has been unable to follow his or her usual occupation by reason of accident or disease for the waiting period (6 months) and, in the opinion of the insurer, after consideration of medical evidence is unlikely ever to be able to follow their usual occupation or any other occupation for which the member could be reasonably considered qualified by education, training or experience.
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Where a member wishes to transfer existing assets from one complying fund to another.
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The document which sets out the rules for the establishment and operation of a superannuation fund.
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A person or company appointed under the terms of a superannuation fund’s Trust Deed to hold trust fund assets for the members. The Trustee makes sure that the Fund is operated in accordance with the Trust Deed.
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