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Australian Superannuation Meanings.

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

Salary Sacrifice

An agreed arrangement between an employer and employee whereby the employee's gross salary is reduced by a certain amount, and the employer's contributions to the superannuation is increased by the same amount. Note that the amount of the salary sacrifice must be in addition to the normal contributions required to be made by the employer. This can be a very tax-effective way of saving for the employee, although it should be noted that the additional amount contributed to the superannuation fund will be subject to preservation.


The member's spouse, including a person who, although not legally married to the member, lives with the member on a genuine domestice basis as the husband or wife of the member. Spouse does not include a person of the same sex as the member.


A means of setting aside funds during working life for use in retirement.

Superannuation Guarantee (SG)

The minimum amount that an employer is required to contribute to a complying superannuation fund on behalf of each qualifying employee (currently 9% as at July 1, 2002).

Employers who fail to meet their SG obligations are liable to substantial financial penalty, called the Superannuation Guarantee Charge (SGC).

Superannuation Industry (Supervision) Act (SIS Act)

The legislation which governs the operation of all complying superannuation funds.

Total & Permanent Disablement

Total and Permanent Disablement is defined in the insurance policy held by the Trustee to mean:
  1. the member suffering the loss of use of two limbs or the sight in both eyes or the loss of the use of one limb and the sight in one eye (where limb is defined as the whole hand or the whole foot); OR
  2. the member having been absent from their occupation with the employer through injury or illness for six consecutive months and having provided proof to the satisfaction of the Fund insurer that the member has become incapacitated to the extent as to render the member unlikely to ever again engage in any gainful profession, trade or occupation for which the member is reasonably qualified by reason of education, training or experience.


The persons or corporate body that has a legal responsibility for the running of the fund in accordance with the requirement of the trust deed. The Trustee of Australian Primary is a company with equal numbers of directors representing employees and employers. Irrespective of who appointed them, the Trustees/Directors owe a fiduciary duty to the beneficiaries.

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