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  • Account Based Pension (ABP)

    Also known as an allocated pension. An investment option that provides you with regular income payments from your accumulated super once you have fully retired. Rather than taking out your entire lump sum, you can manage the payments from an account held in your super fund. The payments will stop when your super balance runs out.

  • After-tax salary

    Your salary amount after taxes have been deducted.

  • Assessable income

    The income that can be taxed if you earn more than the tax-free threshold. It includes salary/wages/bonuses/commissions plus all other income from bank accounts and investments.

  • Assets

    Resources owned by an individual, organisation or other party that are believed to hold future economic value or benefit. Super fund assets may include; property, cash, insurance policies and shares.

  • Association of Superannuation Funds of Australia (ASFA)

    An industry association representing the interests of all superannuation funds, members and trustees across the super sector.

  • Balanced growth

    One of Equip’s investment options with 70% allocated to growth assets and 30% defensive.

  • Benchmark

    The standard of performance that an investment portfolio is measured against.

  • Beneficiary

    Nominated people to whom you would like to leave a superannuation benefit. In the context of superannuation, this could be a representative or family dependant who would receive your superannuation benefit if you die.

  • Benefit

    The amount of money you or your beneficiaries may receive upon your retirement, death, disablement or other circumstances as set out in the Trust Deed and meeting a superannuation condition of release.

  • Binding Death Benefit Nomination (BDBN)

    A legal direction set out to the trustee stating how your benefit will be paid to your nominated beneficiaries, representatives and/or dependants in the event of your death.

  • Buy-sell spreads

    Used to calculate the transaction cost that occurs when you buy or sell investment options in the fund. They are a small percentage of the value of assets being traded and apply to investment switches, contributions and other investment transactions.

  • Capital

    The wealth of an individual or organisation. Capital is usually measured in the form of money, assets and/or property.

  • Commodities

    Materials or goods which can be traded, purchased or sold as an item of commerce.

  • Condition of release

    Conditions prescribed by law that must be satisfied in order for a super fund to pay benefits to you and/or your dependants.

  • Concessional contributions

    Contributions made into your super account from your pre-tax salary/income. These can include Superannuation Guarantee (SG), salary sacrifice and contributions you make if your are self-employed for which you can claim a tax deduction. Concessional contributions are taxed at 15% rather than your marginal tax rate which could be up to 49%.

  • Conservative option

    An Equip diversified investment option with 30% invested in growth assets and 70% in defensive.

  • Contributions cap

    A government-set limit on the amount of contributions that can be made into your super account before higher tax and interest fees apply.

  • Death and Total and Permanent Disablement (TPD) cover

    Death and Total and Permanent Disablement cover is insurance designed to financially support yourself and your family should you become terminally ill, permanently disabled or if you die.

  • Death benefit

    The amount payable to your nominated beneficiaries/dependants if you die.

  • Defensive alternatives

    These are investments that generally deliver consistent income over the long term, behaving in a similar way to an interest bearing asset.

  • Defined benefit fund

    A super fund where your retirement benefits are pre-determined by a formula and underwritten by your employer. The formula is usually calculated using your salary and the number of years you have worked for your employer. Market and investment fluctuations do not influence your benefit amount, unless those circumstances render your employer unable to fully fund your benefit.

  • Dependants

    These can include your spouse (including a de-facto partner), your or your partner’s children, stepchildren, adopted children or anyone who the fund trustee considers to have been financially and legally dependent on you at the time of your death.

  • Derivatives

    Derivatives are assets that enable us to mitigate risk by varying our exposure to individual securities and markets without having to buy or sell the underlying securities.

  • Diversified investment option

    A mixture of investments in commodities, shares, property, bonds and other assets.

  • Diversified portfolio

    A collection of various types of assets and investments.

  • Eligible Rollover Fund (ERF)

    A super (or deposit) fund that can receive benefits rolled from other super funds. They are usually designed for lost members and/or inactive accounts.

  • Equities

    An interchangeable term for stocks and shares.

  • Financial hardship

    Difficulties in paying your loan and/or bill payments due to unexpected circumstances or changes that impact you financially.

  • Government co-contribution

    A scheme in which the Government make additional payments to your super if you have a relatively low income. If you pay after-tax contributions into your super and earn below the nominated threshold, you may be eligible for government payments of up to $500 each year.

  • Income stream

    Regular payments from your super fund or from a life insurance company (annuity).

  • Inflation

    A measure of the increase in the price level of goods and services. The Consumer Price Index (CPI) is commonly used in Australia.

  • Infrastructure

    An investment in essential services and facility systems such as transport, water, electricity and telecommunications.

  • Insurance premiums

    The amount of money an individual or organisation is required to pay in order to possess a valid insurance policy.

  • Investment return

    The monetary value an investment earns and loses over a period of time. Returns are usually measured in percentages.

  • Letter of compliance

    A certified document stating that Equip is a compliant and regulated super fund. This should be given to your employer when you ask them to pay your super into Equip.

  • Low Income Super Contribution Scheme (LISC)

    A federal Government initiative to support those with an annual income of less than $37,000 to save for retirement. It is 15% of the concessional (before-tax) contributions that you or your employer pays into your super fund for the financial year. If eligible, you could receive a superannuation payment of up to $500 each year.

  • Lump sum

    A benefit payable as one cash payment opposed to receiving income based payments over time.

  • Marginal income tax rate

    The percentage of tax you pay on your income. The rate can vary depending on the tax bracket you fall into.

  • Non-concessional contributions

    Contributions made into your super account from your after-tax salary/income. Termed non-concessional as you do not receive gain any income tax concessions.

  • Notional Taxed Contributions (NTC)

    Notional Taxed Contributions apply to defined benefits for the purpose of calculating whether a person making extra salary sacrifice contributions has exceeded the concessional contributions cap.

  • Overseas shares

    Also known as global or international shares. Generally are shares listed on stock exchanges outside of Australia. Occasionally, this asset class may include unlisted shares.

  • Permitted ranges (asset allocations)

    These are the amounts either side of a diversified investment option’s published asset allocation that investment managers are allowed to operate within.

  • Preservation age

    The minimum age at which you can gain access to your superannuation upon permanent retirement.

  • Pre-tax salary

    Your salary amounts before taxes have been deducted.

  • Proxy Voting

    Votes cast by an authorised third party on behalf of a shareholder at events like company annual general meetings.

  • Retrenchment

    Another term for redundancy. The termination of an employee’s role in order for a company to reduce expenses or restructure.

  • Roll-in

    To consolidate all of your super from separate accounts into one account. This may be useful to do if you have worked for a number of different employers and have a number of super accounts.

  • Rollover

    The process of transferring your super into another super fund.

  • Salary Continuance Insurance (SCI)

    An insurance policy that provides a monthly income for a period of up to two years if you are partially or totally disabled due to injury or illness and unable to work.

  • Salary sacrifice

    In relation to super, salary sacrifice is an arrangement between you and your employer where an agreed portion of your before-tax salary is contributed into your super. You may use it to reduce your income tax while boosting your super savings.

  • Self-managed Super Fund (SMSF)

    A retirement fund that is managed by you. An SMSF can have up to four members, all of which have to be trustees.

  • Shareholders

    An individual or organisation that own shares in a company.

  • Spouse contribution

    These are non-concessional (after-tax) contributions that are made by one spouse into the super account of the other spouse. An 18% tax offset may be available on contributions if you are eligible.

  • Standard choice form

    A form that enables your to choose the super fund into which you want your employer to pay contributions. If you do not choose your own fund, contributions will be paid into your employer’s default fund.

  • Strategic Asset Allocation (SAA)

    This sets the target asset allocation for each diversified investment option. Allocations may vary from this from time to time within permitted ranges.

  • Summary risk level

    A high-level evaluation and statement of the level of risk associated with investments. It is generally described in terms of the number of years in which you may experience some losses over a given period.

  • Super splitting

    This allows you to split up to 85% of the contributions you make in a single financial year with your spouse or partner.

  • Superannuation Guarantee (SG)

    Compulsory contributions made into your super by your employer. Currently this amount is 9.5% of your salary, as long as you earn more than $450 a month. These are paid directly into your super fund.

  • SuperRatings

    An independent research organisation that compares and publishes performance information on Australia’s superannuation industry and products.

  • Sustainable Responsible Investment (SRI)

    An investment strategy that incorporates social, environmental and Governance (ESG) issues into its financial objectives.

  • Taxable income

    The amount left over after you have claimed all allowable expenses from your assessable income. (Assessable income – allowable deductions = taxable income)

  • Tax File Number (TFN)

    A unique number issued by the Australian Tax Office (ATO) to all taxpaying individuals and businesses for tax record and administration purposes.

  • Top holdings

    Top holdings are the largest assets held by the fund by dollar value.

  • Transition to Retirement Pension (TRP)

    An account based pension that allows eligible members to start accessing their super while still working.

  • Trust deed

    A legal document stating the requirements and governance rules for a super fund.

  • Trustees

    An individual or body legally responsible for the management of a fund in accordance with the trust deed requirements and superannuation law.

  • Underwriting

    Is a process and set of rules applied by an insurer to determine whether to insure a person or, if accepted, what premium should be charged according to the level of risk associated with the insured.

  • Unit prices

    Unit prices are the dollar value calculated for each investment option in the fund and reflect rises and falls in the value of each investment.

  • Unlisted security

    An asset that is not listed on the Australian or overseas stock exchanges.

  • Venture capital

    Capital that has usually been invested in a new or expanding business.

  • Voluntary contributions (Non-concessional contributions)

    Contributions you make to super out of your after-tax income or savings.

Check your retirement income with the Equip calculator

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