A
Accumulation fund
A superannuation account that works like a bank account. Your benefit is made up of contributions you and your employer make plus investment returns (which can be both positive and negative), less withdrawals, taxes, administration fees and insurance premiums (if applicable). The member bears the investment risk. Super Saver is an accumulation fund.
Allocated Pension
A pension that works on an accumulation basis, providing you with a regular series of payments during retirement. Learn more
Alternative investments
Alternative assets are investments that lie outside the traditional share, property, and fixed interest investment markets. Download the Alternative investments fact sheet
Asset allocation
The mix of different assets that make up investment options (e.g. shares, property, cash and fixed interest are parts of the Balanced Growth Investment option). Download the Asset Allocation fact sheet
ATO
Australian Tax Office. You can visit the ATO's website at www.ato.gov.au
B
Beneficiary
A beneficiary is the person / people you wish your death benefit to be paid to. Death benefits from the Vision Super Defined Benefit plan, Additional Benefits Contracts and Deferred Benefit plan are paid to a member's legal personal representative in all cases, whether or not preferred beneficiaries have been nominated. Death benefits from Vision Super Saver, Vision Personal Plan, and Vision Income Streams will be paid to:
- Your dependants, and/or
- Your legal personal representatives.
The Trustee will determine in what proportions (if any) your benefit is paid.
Benefit
The amount you are entitled to when you leave the fund, through either retirement, retrenchment, resignation or death and disability. The payment you receive is called an Eligible Termination Payment (ETP).
C
Choice of fund
Legislation that allows many working Australians to choose where their Superannuation Guarantee contributions are paid. To find out if you are entitled to Choice, talk to your payroll officer. It's easy to stay with Vision Super after you change jobs: simply download a Choice of Fund form and Certificate of Compliance and give these to your new employer.
Contribution
The money you and your employer place into your super. For Super Saver members, your employer is legally required to contribute 9% of your salary. You can also make voluntary contributions.
Contribution limits
The maximum amounts that can be contributed each year and get tax relief. The limits include contributions your employer makes and any salary sacrifice contributions you make.
From 1 July 2007, before-tax contributions are taxed at two different rates:
- Up to $50,000 pa - 15%
- In excess of $50,000 pa - 45%
If you are 50 and over, transitional arrangements is in place to allow you to make larger pre-tax contributions of up to $100,000 each year. The transitional period is from 1 July 2007 - 30 June 2012.
Contributions tax
Super contributions are normally taxed at 15%. This tax only applies to employer and salary sacrifice contributions. Any contributions made from your post-tax salary are not taxed. From 1 July 2007 employer and salary-sacrifice contributions are taxed at two different rates:
- Up to $50,000 pa - 15%
- In excess of $50,000 pa - 45%
If you are 50 and over, transitional arrangement is in place to allow you to make larger pre-tax contributions of up to $100,000 each year. The transitional period is from 1 July 2007 - 30 June 2012.
D
Defined benefit fund
A super account where the benefits that a member will receive are defined in advance using a set formula. Learn more
Dependant
For the purposes of superannuation, your dependants include:
- Your spouse
- Your child(ren)
- Any other person who, at the time of your death, was wholly or partially dependant on you, or has a right to financial support from you
Diversification
In order to reduce the risk of loss, investments are spread over many different assets, asset classes, investment managers or countries. If one asset is performing poorly, another may perform well and make up for the loss.
E
Eligible Service Period (ESP)
The years of service with an employer and/or as a member of a super fund. For employees, the ESP starts on the date they joined an employer. For self-employed people, the ESP starts on the date they join the super fund as a member.
Eligible Termination Payment (ETP)
A lump sum payment you receive from your superannuation fund or a lump sum payment from an employer when an employee ceases employment.
Equities
Another word for shares. Shares represent ownership in a company.
F
Financial hardship
Your super is normally preserved until you retire permanently on or after age 55. In some cases the trustee may allow an early release of preserved benefits under certain circumstances such as severe financial hardship. Use the Financial hardship form (Form 60)
Fixed interest investments
Defensive investments, normally bonds or debt securities. When governments or companies want to raise money, they may borrow money from investors. Investors lend money for a specified period of time, receiving interest in return. Download the Fixed Interest fact sheet
G
Government Co-contributions
Co-contributions are special payments made by the government (up to $1,500 per year) to superannuation accounts of members whose assessable income is less than $58,000 and who make personal superannuation contributions from their after tax salary.
Growth investments
Investments that usually produce higher returns but usually experience higher volatility. They include shares and property.
Inflation
The rise in price of goods and services. The is measured by the Consumer Price Index (CPI).
L
Lump-sum tax
The tax you pay when you take your benefit payment as a cash ETP. All benefit payment taxes on lump sum payments paid to members from age 60 have been removed from 1 July 2007.
M
Member protection
A rule that protects small superannuation account balances from administrative fees and charges (accounts under $1,000). Generally, fees and charges on small super accounts must not be greater than investment earnings.
N
Normal retirement age (NRA)
The age, as designated by the Trust Deed, at which a retirement benefit is payable. The most common NRA is 65.
O
Ordinary time earnings (OTE)
OTE is the earnings base (salary) that is used in the calculation of Superannuation Guarantee (SG) contributions.
P
Preservation
Legislation requires benefits to be retained within a complying superannuation or rollover fund until the member reaches preservation age and has retired permanently from the workforce. A person's preservation age depends on their date of birth, as set out in the following table:
|
Date of birth |
Preservation age |
|
Before 1 July 1960 |
55 |
|
1 July 1960 - 30 June 1961 |
56 |
|
1 July 1961 - 30 June 1962 |
57 |
|
1 July 1962 - 30 June 1963 |
58 |
|
1 July 1963 - 30 June 1964 |
59 |
|
After 30 June 1964 |
60 |
Property
Ownership in individual properties such as office complexes, factories and shopping centres or pooling money to purchase property assets. Property is considered a growth asset as it has higher risk than cash or bonds. Download the Property investment fact sheet
R
The likelihood that your investment will earn less than expected or even drop in value.
Rollover
Transfering money from one superannuation fund to another. Learn more
S
Salary sacrifice
Salary Sacrifice is an arrangement between an employee and an employer. An employee transfers part of their before tax salary into super to gain tax benefits. Learn more
Shares
Also called equities, shares represent part ownership in a company, usually listed on the stock exchange. Investment returns come from increases (or decreases) in share value over time and / or dividends. Dividends are company profits distributed to shareholders. Learn more about shares by downloading the relevant Investment fact sheet.
Sustainable investment
Investments made in companies that consider wider issues such as labour standards or environmental, social or ethical considerations. Vision offers members a choice of sustainable investment option. Learn more.
Superannuation Complaints Tribunal (SCT)
A body established by the Federal Government to deal with complaints by super fund members and beneficiaries about their fund. There are rules for what complaints the SCT can deal with. More information can be found at www.sct.gov.au.
Superannuation contributions splitting
Members who have made "Splittable contributions" to a super fund can elect to transfer all or part of those contributions made each year into their spouse's account. The spouse may have an account in the members super fund or a different fund.
Superannuation Guarantee (SG)
The amount your employer is required to contribute on your behalf to your super for any month in which your total salary and wages exceeds $450. SG is currently 9% of your salary.
Super Saver
Vision Super's main accumulation plan. To become a member of Vision Super Saver you must be employed by a participating employer. Learn more
T
A legal document which sets out the rules for the operation of a super fund. Learn more
Trustee
The Trustee is responsible for all aspects of the management of the Fund, including governance, investment management, compliance with superannuation and other relevant law, financial management, member records administration, member communication, and advisory services. The Trustee of the Fund is Vision Super Pty Ltd (ABN 50 082 924 561).
U
Undeducted contributions
Personal contributions made from after-tax salary and for which no deduction has been allowed. Salary sacrifice and superannuation guarantee contributions are not included. Undeducted Contributions are a tax-free ETP component.
