Australian Superannuation Glossary.

Below is a list of Australian Superannution related terms and their meanings.

Australian Prudential Regulatory Authority (APRA)

The Federal Government body responsible for regulation and monitoring of the insurance and superannuation industries.

Award superannuation

Superannuation entitlements which are determined by a Federal or State industrial award. Occasionally these entitlements may provide entitlements to employees which are additional to the minimum requirement of the Superannuation Guarantee.

Complying fund

A superannuation fund that is regulated under the Superannuation Industry Supervision (SIS) Act and complies with the operational standards specified in the Regulations.

Active Member

A fund member who is currently receiving contributions to his/her account.

Adjusted Taxable Income

Adjusted Taxable Income is generally the member's taxable income for the year, plus the value of any reportable fringe benefits, tax deductible contributions received and a portion of any employer termination payments received.

Administration fee

The fee charged by a fund against a member's account to cover administration costs. Australian Primary charges a low flat fee, expressed as an amount per week, which can reduce when the member is no longer receiving employer contributions.

Assets

The superannuation money invested by Australian Primary on behalf of its members. Among other things, these may include shares, property, cash or bonds.

Contribution fee

A fee charged by some funds as a percentage of all contributions received. Australian Primary doesn't charge any contribution fees at all.

Death benefit

The amount payable to a member's beneficiaries and/or dependants in the event of the member's death.

Death insurance (Death cover)

Insurance arrangement whereby the member's beneficiaries and/or dependants receive an insured amount in the event of the member's death. Australian Primary offers a choice as to the level of cover, expressed as the amount of cover per unit of insurance. Insurance premiums are deducted from contributions as they are received by Australian Primary. It is most important that you read the detail of your fund's insurance arrangements, and decide what options, if any, you wish to exercise.

Disability

The current policy defines Disability to mean "the member being unable by reason solely of illness or injury to attend to his or her occupation and provided the member is not otherwise gainfully employed or gainfully engaged in gainful business activity".

Inactive member

A fund member who is not currently receiving any contributions to his/her account.

Insurance premiums

The sum of money paid to purchase insurance against death and permanent disability. The premium is deducted from contributions as they are received by the Australian Primary and is detailed on Member Statements.