Super glossary

The words and terms in this glossary are used by Prime Super and presented in the context of superannuation. Click each term to see its definition.

• Account-based pension

  Account-based pension, also known as a retirement income-stream, is funded by the super money you have accumulated throughout your working life. 

• Accumulation fund

  Accumulation funds are super funds into which money is contributed by  employers (as a super guarantee) on behalf of their employees—who may also make payments (see voluntary contributions)—that accumulate over time.

• APRA

  APRA (Australian Prudential Regulation Authority) is an independent statutory authority responsible for the supervision of Australia’s financial, insurance, banking and superannuation institutions. APRA aims to balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality.

• ASFA

  ASFA (the Association of Superannuation Funds of Australia) is the peak policy, research and advocacy body for Australian super funds.

• ASIC

  ASIC (Australian Securities and Investments Commission) is an independent government regulator responsible for regulating registered companies, financial markets and providers of financial services and credit services.

• Beneficiary

  Beneficiaries are the people (or person) you nominate to receive your super in the event of your death. A beneficiary can be your spouse or partner, someone who is dependent on you financially or otherwise, or your estate or legal personal representative. Find out more about nominating a beneficiary.

• Beneficiary nomination

  Beneficiary nomination is a choice you make and document telling the trustee of your super fund where or to whom you’d like your super to go to in the event of your death. There are different types of beneficiary nominations: binding, non-binding or preferred, and reversionary. Find out more about nominating a beneficiary.

• Binding nomination

  Binding nomination enables you to make certain that the trustee of your super fund is legally obligated to carry out your wishes when you die. Binding nominations lapse every three years and must be renewed to remain binding. Find out more about making a binding nomination.

• Canstar

  Canstar is a financial platform and financial comparison site that aims to simplify comparisons between financial services providers.

• Compound interest

  Compound interest is interest paid based on an initial deposit plus the accumulated interest your money has earned. Compound interest is more beneficial than simple interest which is calculated on the initial investment (principal) only, not the growing amount. Watch the compound interest video to understand the power of compound interest in building your super.

• Compulsory super contribution

  Compulsory super contributions are also called superannuation guarantee payments and are the payments employers are required to make into their employees’ super accounts. Find out more about contributing to your Prime Super account.

• Concessional contribution

  Concessional contributions are contributions made into your super account before tax has been applied—two examples are compulsory employer superannuation guarantee contributions and salary sacrifice contributions. Like all types of contributions into super, contributions caps apply, limiting the amount that can be contributed each year. Find out more about contributing to your Prime Super account.

• Concessional contributions cap

  Concessional contributions cap is the limit on the amount of concessional contributions allowed into your super account annually before extra tax is applied. Like all types of contributions into super, contributions caps apply, limiting the amount that can be contributed each year. Find out more about contributing to your Prime Super account.

• Contributions cap

  Contributions caps are annual limits on the amount the government allows to be contributed into each Australian’s superannuation account. Different caps apply to the various types of contributions allowed. Find out more about contributions caps for the 2023 financial year at the Prime Super website or the tax office website.

• Consolidating

  Consolidating your super is when you combine all of your super accounts into one account. Consolidating your super can save you money because you’re no longer paying multiple sets of fees and insurance premiums. Find out how easy it is to consolidate your super with Prime Super.

• Departing Australia superannuation payment (DASP)

  Departing Australia superannuation payment (DASP) is superannuation payable to someone who works in Australia as a temporary resident (excluding New Zealand citizens) and then leaves the country. If a DASP applies to you, find out more about how to access your super.

• Default fund

  Default fund is the super fund an employer has chosen to pay their employees’ super contributions into in the event the employee has not chosen a fund and does not have a stapled fund.

• Defined benefit fund

  Defined benefit funds operate differently to accumulation funds. Defined benefit funds define the benefit amount an employee ends up receiving in retirement based on a formula such as the employee’s length of service or average salary. Defined benefit funds are generally closed to new members.

• Dependant

  Dependants can be anyone that you have an interdependent relationship with or who is financially dependent on you—such as your spouse, former spouse, de facto partner and/or children under 18 years of age.

• Early access

  Early access is the term given to withdrawals from a super account prior to preservation age in special circumstances such as financial hardship, compassionate grounds or a terminal medical condition.

• ESG

  ESG is an initialism for ‘environmental’, ‘social’ and ‘governance’—criteria that denote a set of standards that socially and environmentally conscious investors use to identify suitable investments. Find out about the investment options offered by Prime Super.

• Low income super tax-offset (LISTO)

  Low income super tax-offset (LISTO) is a government superannuation payment of up to $500 to help low-income earners save for retirement. Refer to the tax office website for more information.

• Member guide

  Member guide is a document containing important information to help you understand the risks, costs and potential benefits of investing with your super fund. It’s important to read the Prime Super member guide.

• MySuper

  MySuper is a pre-determined mix of asset classes chosen by your super fund that may comprise cash, fixed interest, property, alternatives and/or Australian and international equities. Find out about Prime Super’s MySuper investment option.

• Non-binding nomination

  Non-binding nomination allows the trustee of your super account to exercise some discretion when releasing your super at the time of your death, while a binding nomination ensures your wishes are carried out by the trustee. Find out more about nominating a beneficiary.

• Preservation age

  Preservation age is the age at which you can access the money in your super account and is determined by your year of birth.

• Product disclosure statement (PDS)

  Product disclosure statement (PDS) outlines the key features of a product such as an insurance product or a super investment, and details applicable fees and charges, and the potential benefits and risks of the product.

• Restricted non-preserved benefit

  Restricted non-preserved benefit is the component of your super that is not preserved but can’t be accessed until you meet a condition of release such as termination of employment.

• Retirement income stream

  Retirement income stream, also known as an account-based pension, can be a tax-effective way of receiving regular income in retirement and is funded by the super money you have accumulated throughout your working life.

• Reversionary nomination

  Reversionary nomination is a beneficiary nomination you can make if you have an income stream account to ensure, when you die, your payments will revert to the person you nominate. Find out more about nominating a beneficiary.

• Risk profile

  Risk profile is determined based on the amount of risk you are willing to accept when investing. Those willing to take on high levels of risk typically seek to maximise their longer-term investment and are less worried about the possibility of short-term negative returns. Risk-averse investors tend to prefer more stable returns.

• Salary sacrifice

  Salary sacrifice is a method of making pre-tax contributions from your salary to your super via your employer. Often, the tax rate in super is less (concessional) than the normal tax rate applied to your salary. Find out more about making salary sacrifice contributions into your Prime Super account.

• Socially responsible investment (SRI)

  Socially responsible investment (SRI) is an investment made in sectors, industries or companies that are considered socially and/or environmentally ethical and/or sustainable. You can find out more about Prime Super’s SRI option.

• Spouse contribution

  Spouse contributions are after-tax contributions you make to a super fund on behalf of your spouse, and vice versa, which may entitle you/your partner to a tax offset. Like all types of contributions into super, contributions caps apply, limiting the amount that can be contributed each year. Find out more about contributing to your Prime Super account.

• Superannuation benefit

  Superannuation benefit is the money you receive or are due to receive from your super fund in retirement.

• Superannuation fund

  Superannuation fund is a compliant investment fund governed by strict government regulation. Australian superannuation funds collectively receive, hold, invest and manage the retirement savings of most of Australia’s workforce. Anyone who chooses to can manage their own superannuation investments by establishing a self-managed superannuation fund (SMSF). Trustees of SMSFs must adhere to stringent reporting and legislative requirements specific to SMSFs.

• Superannuation guarantee (SG)

  Superannuation guarantee (SG) is the compulsory rate of contributions your employer must make to your super. Currently the rate is 11.5% of your annual salary. The SG rate is scheduled to increase to 12.0% from 1 July 2025. Register for MemberOnline and keep an eye on your super account.

• Superannuation investment

  Superannuation investments are the assets held in trust by your super fund. The value of super investments generally increases and decreases based on investment market activity. Over the long-term, your super investments are expected to grow in value. Find out about Prime Super’s investment options.

• Transition to retirement (TTR)

  Transition to retirement (TTR) is a strategy that allows you to access your super once you’ve reached your preservation age while you continue to work full-time or part-time. For more information visit our transition to retirement page.

• Unrestricted non-preserved benefit

  Unrestricted non-preserved benefit is the component of your super that is accessible to you because any conditions of release have already been met.

• Voluntary contribution

  Voluntary contributions are extra contributions you can make to grow your super in addition to the compulsory superannuation guarantee contributions made by your employer. You can make contributions using money that has already been taxed such as your after-tax salary (non-concessional contributions) or money that has not yet had tax applied such as your gross income via salary sacrifice contributions (concessional contributions). Like all types of contributions into super, contributions caps apply, limiting the amount that can be contributed each year. Find out more about contributing to your Prime Super account.