A beneficiary is someone who will receive the super funds under a Binding or Non-binding Death Benefit Nomination.
A Binding Death Benefit Nomination is a way to nominate who will receive your superannuation funds should you pass away. However it is only valid for a period of three years and therefore needs to be updated to ensure it remains current.
If you make additional contributions to your super, you may be eligible for a co-contribution from the government. The amount the government contributes will depend on your salary and capped at a certain amount.
A fund that follows the rules contained in the superannuation Industry (Supervision) Act 1993 and the Fund’s Trust Deed.
Contributions from before-tax income, or for which a tax deduction has been claimed. It can be a contribution by you or for you into your super fund. The Fund will pay the tax on the contribution. Often this is done as a salary sacrifice.
If a superannuation member should die, the Fund will pay a death benefit to an eligible beneficiary or to the deceased member’s estate either as a lump sum or an income.
The default insurance cover is the minimum level of automatic life insurance offered by your Fund.
Also known as Income Protection. This is a type of cover provided by your Fund to provide income protection (usually up to 75% of your income) should you be unable to work due to injury or illness. It is not offered by all super funds so check with your Fund to see whether it does.
Should you be unable to work for a period due to illness or injury, income protection will provide you with a percentage of your income subject to a capped benefit amount or time limit.
An insurance premium is the cost of obtaining insurance cover, paid as a lump sum or in instalments during the duration of the policy.
The payment of a life insurance benefit upon the death of a fund member.
The selection of investment options available to you through your super fund.
A superannuation fund which has one trust deed that allows a number of companies or individuals to join.
An additional contribution made by members from their take-home wage or salary.
The purpose of MySuper is to reduce the complexity and excessive fees of default superannuation products. All super funds within Australia are now required to offer a MySuper product, if they wish to accept Super Guarantee Contributions.
Non-concessional contributions are after-tax contributions into superannuation.
The age at which you can access your super funds. This will depend on your date of birth.
Date of birth
Before 1 July 1960
1 July 1960 - 30 June 1961
1 July 1961 - 30 June 1962
1 July 1962 - 30 June 1963
1 July 1963 - 30 June 1964
After 1 July 1964
A concessional contribution to your super made by you from your before-tax pay. This means the contribution is taxed at a different rate to your normal salary or wage.
The Superannuation Guarantee is a compulsory system of superannuation support for Australian employees, paid for by employers.
A fee to change the way your money is invested.
An injury or illness that means you are no longer able to work. Some super funds will offer TPD insurance.