Superannuation and Retirement Applications (SRA) key terms

The minimum age at which a member may access preserved superannuation benefits, generally between 55 and 60 depending on birth date, and only after meeting a condition of release.

A specified event, such as retirement, reaching age 65, permanent incapacity or terminal illness, that must occur before a member can lawfully access preserved superannuation money.

Superannuation money that must remain in the fund until the member satisfies a condition of release; it cannot be withdrawn early except in limited compassionate or hardship circumstances.

A low-cost, simple default superannuation product that trustees must offer to members who do not choose an investment option, with restrictions on fees, insurance and investment strategy.

The Australian Prudential Regulation Authority, which licenses and prudentially supervises superannuation trustees, funds and insurers to promote financial system stability and member protection.

The Australian Securities and Investments Commission, which regulates market conduct, financial product disclosure and consumer protection, including licensing of advisers and superannuation conduct obligations.

The Superannuation Industry (Supervision) Act 1993, the primary legislation setting out trustee duties, operating standards, preservation rules and prudential requirements for regulated superannuation funds.

The legal obligations of a superannuation trustee to act in members' best interests, manage conflicts, invest prudently and comply with the fund's governing rules and superannuation law.

The superannuation fund an employer uses to pay compulsory contributions for an employee who has not chosen their own fund, now governed by stapling rules that generally follow the member.

The statutory requirement for employers to pay a minimum percentage of each eligible employee's ordinary time earnings into superannuation, currently 12 per cent and legislated to remain at that level.

The earnings base used to calculate superannuation guarantee contributions, generally including ordinary hours pay, over-award payments, shift loadings and some allowances, but excluding overtime.

A contribution made from before-tax money, such as employer contributions or salary sacrifice, which is taxed at concessional rates inside the fund and counts toward the concessional cap.

A contribution made from after-tax money, such as a personal contribution from savings, which does not receive a tax deduction and counts toward the non-concessional cap.

The annual limit on contributions that receive concessional tax treatment; amounts above the cap attract additional tax and must be reported and managed by the member.

A rule allowing eligible members under age 75 to make up to three years of non-concessional contributions in one year, subject to their total superannuation balance and the applicable cap.

An arrangement where an employee agrees to forgo part of their salary in return for employer superannuation contributions, reducing taxable income while increasing retirement savings.

An additional 15 per cent tax on concessional contributions for higher-income individuals whose income plus concessional contributions exceeds the statutory threshold.

The combined value of a member's superannuation interests across all funds, used to determine eligibility for various contribution caps, catch-up contributions and bring-forward arrangements.

A retirement income stream that pays a minimum annual amount based on the member's age and account balance, with the remaining balance invested and accessible at any time.

A superannuation pension that meets statutory requirements so investment earnings supporting it are exempt from tax, provided minimum payment standards are met each year.

The rule requiring a retirement phase income stream to pay at least a minimum annual amount, calculated using a percentage based on the recipient's age applied to the account balance.

A pension allowing a member who has reached preservation age to draw limited income while still working, with concessional tax treatment of earnings removed since 2015.

A contract, often with a life insurer, that pays a guaranteed income for a set term or for life, providing certainty about payments and longevity protection in retirement planning.

The risk that a person outlives their retirement savings, leaving insufficient funds for later years; it drives demand for lifetime income products and careful drawdown planning.

The portion of a superannuation benefit that has already been taxed and is paid tax-free to the member or dependants, typically arising from after-tax contributions or certain eligible amounts.

The portion of a superannuation benefit comprising concessional contributions and fund earnings, which may be taxed depending on the member's age and whether it is paid as a lump sum or income stream.

A single payment of a superannuation benefit, taxed differently from an income stream depending on the recipient's age, the benefit's components and whether it is paid on death.

A lifetime limit on the total amount that can be transferred into retirement phase, indexed over time, with excess amounts attracting tax on earnings.

A means-tested government payment for older Australians who meet age and residency requirements, calculated using income and assets tests to determine entitlement.

One of the means tests used to assess age pension entitlement, based on the value of a person's assets above a threshold, with the lower of the assets and income test results applying.

A social security rule that treats financial assets as earning a prescribed rate of income regardless of actual returns, simplifying the income test for pension assessment.

A means test that reduces age pension entitlement as assessable income rises, using thresholds and taper rates, and is compared with the assets test to determine the lower payment.

The legal obligation on financial advisers to act in the client's best interests when providing personal advice, prioritising the client's objectives over the adviser's or licensee's interests.

A disclosure document given to a client when personal financial advice is provided, setting out the advice, its basis, costs, conflicts and the client's objectives and circumstances.

A document that must be provided to retail clients at an early stage, explaining the services offered, remuneration, associations and dispute resolution arrangements of the providing entity.

Situations where an adviser's or licensee's interests, such as commissions or ownership links, may influence advice; these must be identified, disclosed and managed under conduct obligations.