Virgin Super
Making your super work harder for you
Superannuation FAQs
General info
Managing
Consolidating
Life changes
Jargon unplugged
General things about superannuation
If your super investment option carries a higher level of risk, it means you have the potential to see higher returns over the long term. In the short term, it's important to note that investment options with higher level of risk may experience negative returns - generally between one and five years.
Different types of risks applicable for super funds include:
Investment risk - All investments have the potential for fluctuating returns. Generally the higher the risk, the higher the return; but also the higher the probability of a negative return.
Market risk - This includes universal factors such as economic cycles, government policy, interest rates and inflation. Changes in these factors may result in dramatic increases or decreases in market valuations.
Currency risk - The risk that movements in foreign currency will affect the domestic value of overseas investments.
Legislative risk - Changes in legislation (such as super and taxation laws) may affect your investment.
Fund risk - The risk around your fund terminating, a risk we plan to keep to a minimum.
Liquidity risk - Liquidity risk is the extent to which investments can be converted into cash or other liquid securities without suffering a substantial reduction in value. This risk may arise in circumstances where in order to liquidate an asset quickly, it may be necessary to sell that asset at a substantial discount and so have a negative impact on the overall performance of the Fund.
For more information on risk and return, see page 9 of the Product Disclosure Statement.
Cash - Deposits in a bank, short-term loan securities and other similar investments. Lowest risk with a corresponding expectation of low returns.
Fixed interest - Usually a loan to a government or business where a fixed rate and loan length are agreed to in advance. Moderate risk investment. Less risky than property and shares over the short term, but also provides a lower level of return.
Property - An investment in property or developments, either directly or through property trusts. Moderate to high risk investment, due to reliance on economic factors, location and quality. Has a corresponding level of moderate to high returns.
Australian shares - Investments in Australian companies, usually listed on the Australian Stock Exchange (ASX). The expected return is high over the long term, but the risk is greater.
International shares - Investments in overseas companies. Similar to Australian shares. Generally the expected return is high over the long term, but the risk is greater.
The index bit
An index is a way of measuring the change in value of a market over time. Every asset class has its own index; for Australian shares it's the Australian All Ordinaries. You might notice on the evening news in the financial report, the person will usually say something like “The All Ordinaries initially fell by x% today before bouncing back to end the day higher”.
The tracking bit
You follow in the tracks of the index. A bit like a wildlife enthusiast, you follow at a distance, patiently observing market behaviour. When tracking, you're trying to perform as the index does. An active manager will actively attempt to out-perform the index and may come up short if investments behave differently than expected.
Putting the two together
You follow (track) an index. The index manager buys a sample of all the assets in the index. When the index goes up, your investment follows. And when it goes down, so does your investment. If you bought shares in all the companies in the Australian All Ordinaries, you'd be paying a lot of attention to those graphs on the news.
Drawing a conclusion
Basically, index tracking is a long-term strategy designed to remove the risk of picking poor investments in the short-term. It's about not relying on the luck or skill of a fund manager, therefore reducing a level of risk. It also means if a particular investment goes through the roof, you may miss out. Check out an example of how an index fund tracks the performance of a particular market.
Salary sacrifice - If your employer has a salary sacrifice option, seriously think about taking advantage of it.
It works like this:
- You ask your employer to pay some of your gross salary into your super fund (the sacrifice).
- Your super contributions are taxed at a maximum rate of 15%.
- By reducing the income you receive you may push yourself into a lower tax bracket and pay less tax again.
All of which means more money for you to invest.
Chasing short-term gains
Frequently switching investment options based on short-term market performance could mean you actually lose out over time. Most people will only need to change their investment options when their circumstances change significantly, roughly two or three times in their lifetime. Check out this Market Performance History Graph to see how markets behave in cycles and that after a period of good performance, a downturn occurs. Just remember, what goes down, usually goes back up again.
Specific things about Virgin Super
They're part of the Macquarie Bank Group, an Australian investment bank and one of Australia's top 50 listed companies. With over 35 years’ experience, Macquarie Bank operates in a range of investment banking, commercial banking and retail financial services markets in Australia and internationally.
Macquarie is a full service fund manager, with expertise in all major asset sectors and 25 years funds management experience. Macquarie's strong client focus, disciplined investment processes and dedication to innovation has established their reputation as one of Australia's leading fund managers. Since its establishment in 1969, Macquarie has been associated with a stream of major financial innovations, achieving significant benefits for clients and underpinning Macquarie's reputation as a market leader.
We look at the sell price of each asset class (Australian shares, International shares, Property and Cash & Fixed Interest) at the beginning and end of each quarter. The change in price is then shown as a percentage.
Your individual super
Your individual performance may vary from the overall performance for two reasons:
• the unit price changes daily, and so investment performance depends on the day you've invested
• you need to consider the impact of any additional contributions.
- index (market) returns are usually quoted over a full year or quarter.
- index returns don't include buy/sell transaction costs or tax.
- Virgin Super has been growing pretty quickly and there's sometimes a delay between receiving and investing dollars, technically known as interfunding.
You can also make your own personal contributions.
Does this cost anything? Yes, you will need to pay transaction costs.
Payment methods
|
Online |
You’ll need your Membership Number, then log into your online Super account using the 'Login for Members' button. Once logged in, head to the ‘Personal Contributions’ section. |
|
BPAY® |
To make a contribution using BPAY you’ll need your Virgin Super Member Number and our BPAY Biller Code – 134023. |
|
Direct debit |
To set up a direct debit for regular contributions to Virgin Super you’ll need to: |
|
Cheque |
Send us a Contributions Return Form along with a cheque payable to Virgin Super. Send it to Virgin Money, PO Box 1489, Wollongong, NSW 2500. |
The rules. This applies to contributions made after 1 January 2006. Requests can only be made in the financial year following the introduction of the law – in normal speak, after 1 July 2006.
Making a spouse contribution. Your spouse will need to send us a cheque payable to Virgin Super with your Membership Number on the back. Send it to Virgin Super, PO Box 1489, Wollongong NSW 2500.
We charge a $1 per week Member Fee and a Management Fee where you get a discount once your account balance hits $25,000. For the first $25,000 of your balance the Management Fee is a low 1%. On your balance from $25,001 to $250,000 the Management Fee applied is 0.8% p.a and on your balance above $250,001, the fee is 0.6% p.a. The longer you're with us, the more potential you have for a healthy super balance. (Consolidating all your super with us may also help!)
If you're working out how much maintaining your super is really going to cost you, remember to check out the transaction costs (See "How do I figure out my transaction costs?" FAQ) as well.
For more information, click here.
The cost is between 0.036% and 0.25% of the amount being 'transacted', depending on your investment choice.
For example, if you contribute $1,000 to the Lifestage Tracker Aggressive Under 40's mix you're actually buying an investment, and it'll set you back $2.50. If you switch $1,000 from the Select Your Own Cash/Fixed Interest investment option to the Select Your Own Property option, you're both selling and buying investments. It'll cost you $0.36 to leave Cash/Fixed and $2.50 take up the Property option. For more information, click here.
• Our investment options: Life Stage Tracker® (if you prefer to leave the bulk of the investment thinking to the experts) or Select Your Own (if you’d like to have more control over your super). Please note that you can’t be in both.
• The four major asset classes if you wish to change your asset allocation within the Select your Own investment option.
Any of these changes will incur transaction costs (see the "How do I figure out my transaction costs?" FAQ above).
You can switch either online or in writing:
• Log in to your online account and select 'Investment Choice', then simply make your choice of investments; or
• Fill in an Investment Options Form and mail it to us at Virgin Super, PO Box 1489, Wollongong, NSW 2500.
- Death cover: This provides a lump sum cash payment when you die or if you're diagnosed with a terminal illness.
- Total and Permanent Disablement (TPD) cover: This provides a lump sum cash payment if you're permanently unable to work due to illness or injury. You can only take up TPD with death cover (i.e. not on a standalone basis).
- Income Protection (IP) cover: If you're unable to work after a 90-day waiting period, Income Protection Insurance pays up to 75% of your salary in monthly benefits. You can only take up IP with death cover (i.e. not on a standalone basis).
If you're already a Virgin Super member, you'll just need to complete the Rollover Form at a later date.
- Your account's been inactive for two years (inactive means no-one has put cash in it)
- Your fund doesn't have your address or the mail they sent you has been returned.
If you're wondering what makes super ' lost', it's if there's a super account in your name that hasn't had any deposits made in two years, or if your super fund gets a couple of return-to-sender notices after they've tried to reach you. When this happens, the ATO is informed, and your 'lost' record is added to their register.
You can rollover your lost super to us by completing the Rollover Form (PDF) and sending it back to us - we'll do all the rest for you!
If you're not a Virgin Super member, you can join online now and rollover your lost super to us.
Please note: If you have lost super in more than one fund you'll need to complete a form for each one.
- Join now by completing our straightforward 5-min online application form (you'll need your Tax File Number handy)
- Then download, print and complete the Rollover Form to tell us you want to rollover an old super account. Post it to us at Virgin Money, PO Box 1489, Wollongong, NSW 2500
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
|
Date of birth |
Preservation age |
|
Before 1 July 1960 |
55 |
|
1 July 1960 to 30 June 1961 |
56 |
|
1 July 1961 to 30 June 1962 |
57 |
|
1 July 1962 to 30 June 1963 |
58 |
|
1 July 1963 to 30 June 1964 |
59 |
|
After 1 July 1964 |
60 |
- You leave gainful employment after age 60
- You become totally and permanently disabled
- You experience severe financial hardship and meet certain requirements
- You have compassionate grounds for needing the money, as approved by the Australian Prudential Regulation Authority
- If you are a temporary resident on a specified class of visa and you permanently depart Australia.
• You leave employment and your benefit is less than $200;
• You leave gainful employment after the preservation age (normally 60 but you can check out your preservation age at in our FAQ "When can I claim my super benefits?" above);
• You become totally and permanently disabled;
• You become terminally ill;
• You experience severe financial hardship and meet certain requirements;
• You have compassionate grounds for needing the money, as approved by the Australian Prudential Regulation Authority (APRA);
• You’re a temporary resident on a specified class of visa and you permanently depart Australia.
If you have any questions call our Customer Care Team on 1300 652 770, 8am - 6pm (EST), Monday-Friday.
If you've come to Australia after 1 July 2002 on an eligible temporary resident's visa or if you're a non-resident leaving Australia permanently, you may be eligible for the Departing Australia Super Payment (DASP).
After leaving Australia, you can claim your super at anytime from us or by contacting the Australian Taxation Office.
Main things you need to know:
- To claim you must be either a non-resident or on an eligible temporary resident's visa.
- You can't make a claim if you're an Australian citizen, permanent resident or New Zealander.
More things you need to know
The folks at the Australian Taxation Office have got all you need to know about their process, including online forms.
- Your dependants - spouse (including a de facto spouse or in some circumstances, a same sex partner), children, anyone else who is financially dependent on you, or anyone with whom you have an interdependent relationship; or
- Your estate.
Yes, Virgin Super gives you three options, but there are legal bits and pieces you need to check.
The options
- Binding nominations - you have the power to determine who should receive your death benefit. Download and complete the Binding Death Nomination Form. Please note you need to update your binding nomination every 3 years.
- Non-binding nominations - the trustee still has the discretion to pay your money to one or more of your dependants or your legal personal representative.
- No nomination - your benefit will be paid at the discretion of the Trustee to one or more of your dependants and/or legal representative.
Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
Once you are a member of Virgin Super, you need to complete the Super Choice Form and pass it to your HR Department so they know you want your 9% employer contributions paid into your Virgin Super account.
Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
- If you're over 18, and earn more than $450 before tax in a calendar month, your employer is usually required to pay super guarantee contributions on your behalf.
- If you're under the age of 18 and work in excess of 30 hours a week, you may also be entitled to super contributions from your employer.
- Even if you normally don't work more than 30 hours per week, extra shifts may entitle you to super payments. If you'd like to join Virgin Super start our online application
Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
If you are struggling financially or meet certain specified grounds for release, you may be able to access some or all of your super before retirement.
Financial grounds for release.
The trustee may release from your super one lump sum payment every twelve months if you can prove both of the below criteria:
- You’ve been receiving a social security pension or benefit for the last 26 weeks.
- You’re unable to meet “reasonable and immediate family expenses".
The payment will be no more than a gross amount of $10,000 and no less than $1,000 (or the balance of your benefit if it is less than $1,000).
Compassionate grounds for release.
Compassionate reasons include where you have expenses for yourself or a dependant when:
- Medical treatment that is not available through the public health system is required for a life threatening illness or acute or chronic pain
- Medical transport is required for the conditions above
- Modifications to the family car or home are required to meet the needs of a disabled dependant
- Palliative care or death related expenses (e.g. funeral) are required. You’ll need to apply to both Australian Prudential Regulation Authority and us by completing the necessary forms.
- To prevent foreclosure of a mortgage on a family home.
If you have any questions please give our Customer Care Team a call on 1300 652 770, 8am - 6pm (EST), Monday-Friday.
Jargon unplugged
A
Active manager
This type of investment manager will try to achieve a better return than the market by actively researching investments. They use sophisticated research processes and tools to achieve this.
Additional employer contributions
Your employer must contribute 9% of your pre-tax earnings to your super fund. If they’re really nice, they might contribute even more, usually fixed as a percentage.
Allocated pension
An investment that delivers regular payments, within legal limits. The payments continue until all the money is gone or the person receiving the money dies.
Annual income
Not just your salary, but all your income each year. It includes pretty much anything capable of bringing you an income, such as: annual salary, bonuses, commissions, interest and dividends, rent money, divorce money and lottery winnings (but not your two-up winnings on Anzac Day).
APRA
What the Irish watch at the Opera House. It also stands for Australian Prudential Regulation Authority. These good people regulate the financial services industry.
ASFA
The Association of Superannuation Funds of Australia is a national, not for profit, non party political organisation that represents the interests of Australia's superannuation funds, their trustees and their members.
ASIC
These people are the Australian Securities and Investments Commission. Their reason for existing is to protect you, the consumer, from dodgy practices by financial service companies.
Asset
Maybe Mum said your smile was your best asset, but in the world of money an asset is anything you can own that might turn into a future economic benefit.
Asset class
A way of grouping assets into classes based mostly on their level of risk and potential return. The main ones are shares, property, cash and fixed interest.
Asset allocation
Allocation, allocation, allocation, it’s all about allocation and choosing a mix of assets from the main asset classes. You’ll probably want to do this with your super.
ATO
The Australian Taxation Office. A very helpful bunch who know an awful lot about tax.
Australian Stock Exchange (ASX)
The Australian Stock Exchange is the marketplace for shares, bonds, and other securities in Australia.
ASX also sets the exchange, regulates the brokers and provides fair rules for trade. They monitor irregularities in trading prices and volumes, and have the power to suspend companies from being traded.
B
Basis point
Another way of measuring a performance return or a fee. For example, fifteen basis points equals 0.15%
Bear market
People talk about a bear market when there’s a fall in prices with no expectation of recovery any time soon. It's the opposite of a bull market.
Trivia - the phrase comes from an old European proverb used by bearskin sellers:
'Don't sell the bear-skin before you have killed the bear’
Blue chip share
Share of a large company that consistently performs well over time. Great phrase to throw around in a loud voice at barbeques – "I'm looking mostly at blue chips" , most people will nod wisely and others will think "someone’s got to eat them".
Bond
A debt asset. You (the lender) lend a borrower some money in exchange for a bond (proof of the loan). The borrower uses your money and (subject to terms) pays you back the original amount and interest.
Borrower
An individual, company or government that borrows money from lenders.
Bottom up manager
Easy tiger! Despite all sorts of possibilities this simply refers to a manager who researches individual companies in comparative isolation to the global picture.
Bull market
Not a place for buying and selling big daddy cows. It’s a phrase used to describe a consistent upward trend over an extended period of time. If you’re a farmer who's googled your way to this page looking for livestock sales, we're sorry.
Bullish
The belief that the market will go up, many speculative punters will talk bullish, quite a lot of bullish, often the sort of bullish you should probably ignore.
Business day
If it's not a national public holiday or a weekend, it's a business day.
C
Centrelink
Run under the very broad umbrella of the Department of Social Security, these guys set rules for means tests and pension thresholds.
They regulate all pensions apart from Department of Veteran Affairs pensions.
Co-contribution
If you are eligible, the Federal Government will make a contribution known as a co-contribution to your super.
This only happens under certain conditions to personal after-tax contributions.
Complying super fund
A regulated super fund qualifying for concession tax rates by meeting legal requirements.
Concessional contribution.
This is a contribution made from pre-tax income for which a tax deduction can be claimed.
Conservative fund
Sometimes known as a defensive fund, conservative investing is mostly in cash and fixed interest. There may be a minor dabble in more aggressive options but it will be very minor.
Constitution
A document that states how a managed investment should be run. It defines procedures for investing, applying and withdrawing investments. It can be known as a trust deed.
Consumer price index (CPI)
The Australian Bureau of Statistics monitors the price of various defined consumer goods such as food, healthcare and fuel. It's coyly referred to as a 'basket of goods". The "basket" is used to track inflation, so if lots of these go up, so does the inflation figure.
Contribution
A contribution is money paid into your super.
Contributions surcharge tax
An additional tax for higher income earners on all employer and salary sacrifice contributions. Not applicable to contributions made after 30 June 2005.
Contributions tax
A Federal Government tax on employer and salary sacrifice contributions.
D
Defensive asset
Generally, defensive assets have lower returns - but the returns are more stable due to lower risk. Cash is a good example of a defensive asset.
Dependant
Your spouse (legal or de-facto, which may include a same sex partner), your children, your spouse's children or adopted and ex-nuptial children or someone you have an interdependent relationship with.
Diversification
Diversification is dividing your investments among different types of asset class you may reduce your overall investment risk. Otherwise known as not putting all your eggs in one basket.
Diversified fund
A fund made up of a mix of asset classes.
Dollar-cost averaging
A strategy where you pay no attention to market prices and instead buy a set dollar value of an investment at regular intervals (e.g. with a direct debit).
It’s a strategy designed to eliminate losses from attempting to second guess the market, and results in the purchase of more share units when prices are down and less share units when prices are up.
It has been shown to reduce the average price of investments over a long period.
Dow Jones Industrial Average (also known as the Dow)
The Dow is a share price index measuring the market prices of 30 major companies on the New York Stock Exchange.
E
Eligible Rollover Fund (ERF)
A super fund which can receive automatically transferred benefits from other super funds. They’re usually used when a member can’t be located, has a very low account balance, or has been inactive for a long time (inactive with their super).
Entry price
The price of a unit given to an investor when they want to buy into a super fund.
Entry fee option
It’s a fee deducted from each contribution made into an investment.
Exit fee
When you leave your investment (exit), you sometimes have to pay some money (fee). Thus exit fee.
Exit price
The price of a unit given to an investor when they want to take their money out of an investment.
Equity
It’s how much of an asset you own.
F
Financial advisor
Financial advisors are people who are licensed to give you advice on financial matters. They are usually people who know a bit about money and what to do with it.
A licence means a financial advisor is obliged to act solely in your interests. If you think a financial advisor is being a bit shifty, that's where ASIC comes in.
Fixed interest security
An investment that pays the same rate of interest every year for a set timeframe. Examples of fixed interest securities are bonds, annuities, bank bills and notes.
Fund manager
A species often referred to as investment managers, usually operating as an organisation. These investing specialists like nothing better than investing in a portfolio of assets for someone else.
Forgotten Super
It’s simply super in an account somewhere, but you can’t remember where. It’s different to lost super, which has a very specific meaning.
G
Gearing
The ratio of your own loan amount to the value of your security.
Gross domestic product (GDP)
It is a measurement, in dollar terms, of the aggregate goods produced and services provided within an economy over a year. It doesn't include income earned outside the country. GDP is published in Australia by the Australian Bureau of Statistics and is seen as a very important economic measure.
Growth returns
The part of an investor's return that results from capital gains or losses.
H
Happy people
Our Customer Care Team are especially chosen for their happiness skills. Nothing makes them happier than hearing from you.
I
Income Protection Cover
If you can't work because of certain defined events, this type of insurance will pay you a percentage of your income for a certain period of time.
Index
An index measures the performance or change in value of a group of assets such as shares. There are indexes for pretty much any major group of assets. The ASX 100 is an index of the top 100 companies in Australia.
Index manager
An investment manager who aims to perform as well as the investment markets. If the Australian share market returns 10 per cent so should your index manager.
Initial investment
The first wad of cash you whack into an investment.
Insurance
Buying financial protection against a possible future event. If the specific event happens, the company you’ve purchased your policy from will help you out.
Interest
Interest is the price paid by a borrower for the use of a lender's money. So, when you put your money into cash or a fixed interest the borrower (person/company) who has your money has to pay you for the privilege of borrowing your money.
Interdependency relationship
Two people have an interdependency relationship if they have a close personal relationship, they live together, one or each of them provides the other with financial support, and one or each of them provides the other with domestic support and personal care.
Investment
An asset you buy with the hope it’s going to give you an income or increase in value over time.
Investment bond
An investment requiring you to invest money for a minimum term.
Initial public offering (IPO)
When a company floats on the stock market it means you can buy shares in the company. The first time a company sells it's shares is known as the IPO.
Investment option
Your choice of investment options determines how your Super is invested. Have a look in more detail at what we can offer you by way of choice. Virgin Super investment options.
J
Joy
Is what our Customer Care Team feel when they get to answer your questions about super.
K
Knowledge
Of super is what our super Customer Care Team has.
L
Life insurance
When you talk about life insurance in the context of super it means insurance against premature death.
Listed property
Listed property is an asset class made up of property investments listed through a listed company.
Lost Super
It’s if there’s a super account in your name that hasn’t had any deposits made in five consecutive years, or if your super fund gets a couple of return-to-sender notices after they’ve tried to reach you. When this happens, the ATO is informed, and your ‘lost’ record is added to their register.
M
Managed fund
A professionally managed investment where you pool your money with other people's money. Your get units for your money and a cut of the returns, be they positive or negative.
Management fee
The fee you pay your fund manager for managing your super account.
Marginal tax rate
The marginal tax rate is the tax scale in relation to your income. To find out what yours is, check out the Australian Tax Office website.
N
Nice
The people we employ in our Customer Care Team. They really are very nice, we test them for niceness and they're just soooo nice!
Non-concessional contribution.
This is a contribution made with money that you have already paid tax on such as from your after tax salary.
O
Old
Not what you want to be when you start planning your retirement. The younger the better - even though it might seem like a very, very long way off.
P
Product Disclosure Statement (PDS)
A very, very, very important, (usually very long), document for you to read when you're looking at a particular investment. It's where you'll find all the detailed information about the investment. Have a look at the Virgin Super PDS if you like!
Performance benchmark
To give an effective measure of how a fund manager has performed there needs to be a benchmark. This determines whether they’ve done well or not. Your fund might return 10%, but if every other investment of the same style returns 45% it doesn’t look so good. The selection of the appropriate benchmark will depend on the manager's investment style of and what they are investing in.
Permanent incapacity
Permanent incapacity is important for various claims and is a specifically defined state. It's best to have a look at the detail in our Virgin Super PDS for the nitty gritty on this one.
Preservation Age
Is the age you must reach before you’re able to access your super benefits. Go to the ATO website to find out what your preservation age is.
Preservation rules
The rules that stop you getting your hands on all that sweet, sweet super money until certain events occur such as reaching your preservation age.
Property
Not the lost property office of your local train station but real estate, including land and buildings, which can be bought, sold, or rented out.
Q
Questions
Questions, we all have them. Why is the earth flat? What rhymes with orange? Is there life on Mars? Our Customer Care Team may not be able to help with those sorts of questions but they sure know their super. Give them a call if you feel the need - 1300 652 770.
R
Restricted non-preserved benefits
Undeducted contributions, made after 1 July 1994 and before 1 July 1999. These may be released when you leave your employer.
Risk
Some assets carry a higher form of investment risk than others. These are known as growth assets (e.g. shares). Those that are more stable are called defensive assets (e.g. cash and fixed interest). If your super investment option carries a higher level of risk, it means you have the potential to nab juicy returns over the long term. In the short term, it’s important to note that high risk investors may experience negative returns - generally between one and five years.
S
Salary sacrifice contributions
If your employer offers salary sacrifice it means you can ask to pay more of your pre-tax salary into your super. These contributions are taxed at 15% but by reducing the income you receive you may push yourself into a lower tax bracket.
Securities
A type of transferable interest representing financial value. Common examples include notes, bonds, stocks, futures, contracts or options.
Share
When you buy a share or shares, you become a partial owner of a company. If you bought shares in a company and they gave you poor customer service you can start shouting "do you know who I am, I own you, I own you". It might not get you what you want but how often do you get the chance to do that?
Super guarantee contributions
By law, your employer must invest money for you into a complying super fund unless you're earning less than $450 a week. There are also some exceptions around casual work.
Standard Super Choice Form
A form you give to your employer telling them which super fund you have chosen so they can put those contributions where you want them to go.
T
Time horizon
The length of time it takes to reach your investment goals. It's very important for working out your investment goals and what you need to invest in to meet those goals.
In super, it’s the length of time before you plan to use your super.
The Trustees
People responsible for ensuring the Fund is run properly and honestly. We use Trust Company Superannuation Services Ltd – one of Australia's largest specialist super trustees.
U
Undeducted contributions
Contributions to your super made from your after tax earnings.
Unit
When you invest in a managed fund, you are buying units of that fund.
Unit price
This is how much a unit in a super fund will set you back.
Unit trust
Where a group of investors put their money together into a managed fund. They all have units and share the returns of the fund be they positive or negative.
Unrestricted non-preserved benefits
These are benefits you are allowed to get your hands on. How you get your hands on them is determined by the rules of the fund.
V
Virgin Money
Go on, give us a call, 1300 652 770, 8am - 6pm (ESDT), Monday-Friday.
W
X
Y
Y, indeed.
