ABN (Australian Business Number)
This is a unique identification number which a business is required to hold for dealings with the Australian Taxation Office (ATO) and other government agencies.
Account based pension (ABP)
A product that enables you to draw your super in the form of regular income payments until the account is exhausted. You must be eligible to commence an ABP. A Retirement account must receive a minimum amount in pension payments each year based on your age and balance. A Transition to Retirement account must receive at least the minimum amount but no more than the 10%pa maximum amount. In the event of your death, any remaining balance is usually paid to a beneficiary or your legal representative (or estate). Learn more about Rest Pension.
AFSL (Australian Financial Services Licence)
This is a licence issued by Australian Securities and Investments Commission (ASIC) which an organisation is required to hold in order to provide financial services.
Government income support to eligible older Australians who do not have enough income or assets to support themselves.
A category of investments which do not fit into the more traditional asset classes such as shares, bonds or cash. Alternatives can include agricultural investments, a range of credit instruments, private equity (investments in companies not listed on the stock market) and hedge funds (which can invest in a range of assets and use sophisticated trading techniques).
A report which a super fund is required to produce detailing its financial position. To obtain Rest’s annual report, go to the Annual reports and financial statements section.
The asset allocation is the mix of asset classes (e.g. shares, bonds, cash, property, etc.) for an investment option. The asset allocation of each Rest investment option is available in the Investments section of our website.
A category of investment such as shares, bonds and property.
This is used by the government to determine the amount of Age Pension a retiree may be entitled to, if any. This test assesses how much assets a person can have before their pension is impacted. An assets test is performed in conjunction with an income test.
Benchmark (also known as an Index)
An index of return, against which the performance of an individual investment option can be compared. For example, the S&P/ASX 300 Accumulation Index is the benchmark against which our ‘Australian Shares’ investment option is compared.
The person(s) nominated by you to receive your superannuation in the event of your death. Your chosen beneficiaries must either be your dependants or your legal personal representative (estate).
Bonds are one of the major asset classes and covers both Australian and overseas debt securities. The issuer of the bond (typically governments or a corporation) acts as a borrower, while the holder of the bond (the investor) acts as a lender. The bond is issued for a set period of time and the principal must be repaid along with interest, or coupon, payments.
Represents the estimated transaction costs, including brokerage fees and stamp duty, incurred when buying or selling underlying assets in relation to each investment option.
Broadly, the difference between the purchase price and the sale price of an asset. For example, if an asset is bought for $100 and sold for $120, the capital gain is $20.
In the context of superannuation, cash is one of the major asset classes. Cash investments held by super funds can include (but are not limited to) bank deposits, bank bills, commercial paper and short term residential mortgage backed securities.
Cashing restrictions are rules that restrict how a member can cash their superannuation on satisfying a condition of release. For example, if a member satisfies a condition of release such as attaining their preservation age and begins a transition to retirement income stream.
Choice (of superannuation fund)
This is the ability for employees to select which super fund their compulsory employer contributions are paid to. This choice is available to many but not all employees, and for more information visit the Australian Taxation Office website.
Personal super contributions you make from your after-tax income which may attract a top-up from the government, known as a co-contribution. You can learn more about co-contributions at www.rest.com.au/co-cont/.
The rate of return including cumulative earnings on earnings (positive or negative) over a period of time (e.g including earning interest on interest).
Super contributions break down into two main categories: concessional (before-tax) and non-concessional (after-tax) contributions. Concessional contributions include compulsory employer contributions and salary sacrifice contributions. You may also be able to claim a tax deduction for your after-tax contributions.
Concessional contributions cap
The maximum amount of concessional contributions that can be made for a member without incurring additional tax. For more information read our Contributing to Super fact sheet.
Conditions of release
The general term used to describe the various ways by which it is possible to access superannuation benefits. The main conditions of release are:
- You have retired (i.e. reaching preservation age and you have genuinely retired or on or after reaching age 60 and you cease employment)
- You have reached preservation age and commence a transition to retirement income stream
- You have reached age 65
- You die
- You are diagnosed with terminal illness with a life expectancy of less than 24 months
- You become totally and permanently disabled
- You are temporarily disabled
- You satisfy severe financial hardship requirements
- You meet the Australian Taxation Office rules around early release of your super on compassionate grounds
- You've left your Rest employer and your account balance at the time of leaving is less than $200 or
- You are an eligible temporary resident permanently departing Australia (excludes New Zealanders).
There are cashing restrictions on the amount you can access with some conditions of release. For more information read our Accessing your super early fact sheet.
Consumer Price Index (CPI)
This is a measure of inflation that compares the cost of living (i.e. goods and services) over time. CPI is calculated and reported by the Australian Bureau of Statistics.
Tax of 15 per cent applied to concessional contributions (including compulsory employer contributions and salary sacrifice). If your income (including super contributions) is more than $250,000 per annum, contributions tax will effectively be 30% on some or all of the concessional contributions.
The money payable by a super fund to an eligible beneficiary or the legal personal representative (estate) of a member following his/her death.
Death cover (also known as life insurance)
A type of insurance available through your super fund. Death cover provides a lump sum or pension in the event of your death or if you become terminally ill. For more information visit the insurance section.
The super fund your compulsory employer contributions, i.e. Superannuation Guarantee contributions, are paid to, in the event that you do not or cannot exercise choice of fund. An employer must choose a super fund that is authorised to offer a MySuper product as their default fund.
Lower risk investments which typically produce modest, steadier returns but may not outpace inflation in the long-term. For example, cash and bonds.
In investment terms, diversification refers to the spreading of risk (i.e. not putting all your eggs in one basket). Our Core Strategy investment option – which many Rest members invest in – offers diversification benefits by having a wide mix of asset classes, geographies and investment managers.
Eligible rollover fund (ERF)
A fund which is eligible to receive benefits automatically transferred in from other funds.
Rest may rollover a member’s benefits to its ERF (AUSfund) if:
- Your account is less than $6,000, and
- No contributions or rollovers have been paid into a member’s account in the past 16 months
Higher risk investments, prone to greater fluctuation in value. While these investments tend to be more volatile and can produce negative returns in the short-term they offer the potential of higher long-term returns than defensive assets over the longer term. Shares are an exmple of a growth asset.
Your account is considered inactive if we haven’t received any money to add to your account (such as a rollover or contribution) to your account within the last 16 months, and you haven’t let us know that you’d like to continue your insurance cover. You can learn more about inactive accounts here.
Income Protection cover
A type of insurance available through your super fund. This pays an income in the event that you’re unable to work for a prolonged period due to injury or illness. For more information read the relevant Insurance Guide.
Superannuation benefits taken as regular income payments, rather than a lump sum.
This is used by the government to determine the amount of Age Pension a retiree may be entitled to if any. It assesses how much income a person has from all sources to support themselves in retirement. An income test is performed in conjunction with an assets test.
A superannuation fund established to accept and manage super contributions for a particular industry. For example, Rest was established as the super fund for retail workers. However, these days most industry funds, including Rest, are open to everyone.
The rise in the prices of goods and services often measured by the Consumer Price Index.
An asset class which includes investments (directly or indirectly) in transport and utility assets such as airports, shipping ports, toll roads, electricity and gas generation and distribution assets.
The return earned on money lent or invested into financial products such as bonds or cash.
An entity contracted by a super fund to invest members’ money.
The pool of money your super is placed into, typically distinguished by its investment mix. For example, many Rest members have their super invested in the Core Strategy investment option, which is made up of a mixture of cash, bonds, infrastructure, property, shares and alternatives.
The change in value of an investment over time (positive or negative). This is usually expressed as a percentage.
Investment return objective
The return outcome that an investment option is seeking to achieve, usually over a defined time frame. It is not a guaranteed rate of return.
The risk that the actual return on an investment will be different to the expected return. Generally, the higher the potential return of an investment, the higher the risk.
Moving some or all of your superannuation balance from one investment option to another. You can switch your investments online by logging in to MemberAccess, or you can complete and return an ‘Application to make an investment choice’ form. Please note that any switching of investment options will incur a buy/sell spread.
Superannuation taken as a single payment, rather than an income stream.
A statement issued to members at least annually by a super fund. The statement generally includes the member’s account balance, contributions received over the period, investment earnings (could be positive or negative), fees and charges deducted, and details of any insurance the member holds.
Minimum suggested timeframe
The minimum suggested period of time for investing in a particular investment option.
A modern award sets out the minimum terms and conditions of employment for employees that are covered by it within a particular industry or occupation. It may include terms about superannuation. A modern enterprise award is a modern award that applies to one or more business and its employees.
Super contributions break down into two main categories: concessional and non-concessional contributions. Non-concessional contributions are contributions for which you have not claimed a tax deduction and which are made from your take home (after tax) pay. For more information read our Contributing to Super fact sheet.
Non-concessional contributions cap
The maximum amount of non-concessional contributions a member can make without incurring additional tax. For more information read our Contributing to Super fact sheet.
Ordinary time earnings
Generally, the earnings on an employee’s ordinary hours of work, upon which compulsory super contributions (i.e. Superannuation Guarantee contributions), are calculated.
The ability for members to transfer their super monies from one superannuation fund to another.
The regulatory requirement that certain super benefits be maintained within the superannuation system. Preserved benefits can only be accessed once a condition of release is satisfied.
The age at which a member can generally access preserved super benefits (between ages 55 and 60 depending on the member's date of birth). You can learn more about preservation at www.rest.com.au/facts.
Product Disclosure Statement (PDS)
A document describing the key features of a financial product, required to be produced and given to clients. Rest has a PDS for each of its four products: Rest Super, Rest Corporate, Rest Pension, and Acumen.
One of the major investment asset classes. It may includes retail, industrial and commercial properties. Property investments provide rental income and can rise and fall in value over time.
Represents the mean annualised estimate of return over ten years above CPI, after deducting investment and administration fees, costs and taxes. It may change over time and is not a guaranteed return.
Salary sacrifice contributions
An arrangement with your employer where money is deducted from your salary before tax and paid to your super fund. For more information read our Contributing to Super fact sheet.
One of the major asset classes. Also known as a stock or equity, a share is part ownership of a company. The value of shares can rise and fall over time.
Superannuation Guarantee (SG) contributions
Also known as ‘compulsory employer contributions’, these are the minimum level of super contributions that an employer must make for eligible employees. For more information, visit the ATO website.
Total and Permanent Disability cover
This is a type of insurance available through your super fund. Provides a lump sum or, if chosen, an income stream, if you’re sick or injured to the extent that you’re not likely to ever work again. For more information read the relevant Insurance Guide.
‘Transition to Retirement’ provisions
Enables a person who has reached their preservation age to convert part of their superannuation to a pension without the need to retire. This enables the person to reduce their income from work while receiving supplement income from the transition to retirement pension so their overall income is similar. A transition to retirement pension can also be used to help boost your super, for more information see our Transition to Retirement page.
In your dealings with us, ‘trustee’ refers to Retail Employees Superannuation Pty Limited.