Commonly used terms

Commonly used terms - Intech Credit Union

With legislative changes and the complexity of investments and super, it’s hard to keep up with all the terms used. Here’s a useful glossary of some commonly used terms.

Concessional contributions:
previously known as deductible contributions, these include superannuation contributions made from pre-tax income and are concessionally taxed. Employer superannuation guarantee contributions, salary sacrifice contributions and contributions made by the self-employed for which they can claim a tax deduction are all classed as concessional contributions.
generally the member’s spouse (including de facto) or child, or any other person who is financially dependent or in an interdependency relationship with the member.
Growth assets:
assets such as shares and property which are expected to increase in value over the long term.
Imputation (franking) credits:
taxation credits which are passed on to shareholders (including superannuation funds) from companies which have already paid tax on profits before dividends are paid.
Investment risk:
the variability of returns. Generally the higher the potential return, the greater the risk of loss.
Preserved benefits:
superannuation benefits that cannot be accessed until a specified condition of release has been met. It is usually mandatory that benefits be preserved until the individual has retired and is aged between age 56 and 60 (depending on date of birth) or has reached age 65.
Salary sacrifice:
an amount of pre-tax salary that an employee decides to contribute to super instead of taking as cash salary. This is in addition to the compulsory super guarantee contributions that are made by the employer on behalf of an employee.
Super co-contribution:
an Australian Government initiative to help individuals save for their retirement. If you are eligible and make personal contributions to your super, the Government will make a co-contribution on your behalf.

Financial advice makes a difference
Bridges has been providing professional financial planning services to credit union and building society members since 1985. So, if you need help deciphering the jargon, and making the most of your financial situation, call Intech Credit Union on 1300 363 007 and make an appointment with a Bridges financial planner. The initial consultation is complimentary and obligation-free.

Bridges Financial Services Pty Limited (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. This is general advice only
and does not take into account your objectives, financial situation and needs. Before acting on this advice, you should consult a financial planner.

In referring members to Bridges, Intech Credit Union ABN 70 087 650 191 and ACL 236779 does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.