Glossary

An Accumulation account uses the basic principles of addition and subtraction. On the plus side are contributions paid by you and your employer. On the minus side are fees and possibly taxes and insurance premiums. There are also investment returns, which can be positive or negative.

A fortnightly income paid by the Commonwealth Government (through Centrelink) to retired people. Men can access the age pension from age 65 and for women it is available between ages 60 and 65 (depending on date of birth). Centrelink has criteria that must be met before a person is eligible to receive the age pension. For further information, contact Centrelink.

Alternative assets are known as non-traditional investments as they can contain characteristics of both defensive and growth assets. QSuper’s alternative assets include several categories, namely, incubator, and private equity, and diversified investments such as managed funds, commodities, and timber.

Something you own, such as a house, shares, or cash.

The distribution of investments among various asset classes; for example shares, property, cash, alternative assets, or fixed interest.

A category of financial assets. The major asset classes are shares, property, fixed interest, and cash. These can, in turn, be invested in Australian or international shares, Australian or international fixed interest, direct or indirect property, and so on. Each asset class has different risk and return characteristics.

One of the two means tests applied by Centrelink to assess whether an applicant can receive social security benefits. The other test is the income test.

A national association for the superannuation industry. ASFA activities include representing industry interests to government and promoting awareness of superannuation issues.

The Australian Transaction Reports and Analysis Centre, or AUSTRAC, is Australia’s anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit. AUSTRAC works collaboratively with Australian industries and businesses to ensure their compliance with anti-money laundering and counter-terrorism financing legislation.

APRA is the Commonwealth agency responsible for prudential regulation of superannuation funds, including QSuper, as well as banks, life insurance companies, and general insurance companies.

ASIC is responsible for consumer protection in relation to financial products such as superannuation, life insurance, general insurance, and deposit taking (not credit). ASIC is the Commonwealth body responsible under the corporations legislation for the regulation of companies, and the securities and futures industries.

The Australian Taxation Office (ATO) is the Commonwealth’s principal revenue collection agency, and manages and shapes tax, excise, and superannuation systems that fund services for Australia.

The default option available to QSuper members with a deferred retirement benefit, and is indexed by AWOTE to age 55.

The value of a deferred retirement benefit based on a member remaining in the Average Wage option.

A measure of wage and salary levels of Australian employees released by the Australian Bureau of Statistics.