Super glossary: Abbreviations in superannuation

When it comes to your superannuation, do you look beyond the balance?

There’s plenty of financial jargon around retirement savings that can make for some pretty tough reading.

With the help of LDB Group’s handy super glossary, you can break down this terminology and ensure you have a comprehensive understanding of these common abbreviations related to your super account.

ABP (account-based pension)

This retirement income stream allows you to start using the proceeds from your super balance once you’ve met a condition of release. You must withdraw minimum amounts each year, and income payments are tax free at age 60 and over.

CC (concessional contributions)

Concessional contributions are payments made to your super fund before tax. They could be employer contributions, salary sacrifice payments, or contributions you can make and claim as an income tax deduction. These payments are still subject to tax.

CCC (concessional contributions cap)

This is a limit to how much money you can put into your superannuation as concessional contributions before it is taxed at a higher rate. The concessional contributions cap for the 2022-23 financial year is $27,500.

NCCs (non-concessional contributions)

Non-concessional contributions are voluntary payments made from your after-tax income or savings, such as contributions that you cannot claim as a tax deduction or personal contributions made by your spouse.

SFN (superannuation fund number)

Your superannuation fund number is a nine-digit identification number issued to each APRA-regulated superannuation fund.

SG (super guarantee)

Employers are legally required to make a minimum contribution amount into the super fund of eligible employees as part of their remuneration. The super guarantee rate is determined by the Australian government and set to rise incrementally over time.

SGC (super guarantee charge)

If an employer does not pay the minimum SG amount into the correct super fund by the due date, it must pay the superannuation guarantee charge and lodge an SGC statement to the Australian Taxation Office (ATO).

SMSF (self-managed super fund)

Super funds where the members are also the trustees, overseeing the fund’s operations and its investments, are known as self-managed super funds. These funds offer greater control over investments, but also come with additional responsibilities and costs.

TBAR (transfer balance account reports)

Under the events-based reporting system, this is a form that superannuation funds, including self-managed super funds, must lodge with the ATO about any events affecting a member’s transfer balance account.

TBC (transfer balance cap)

The transfer balance cap limits the total amount of superannuation that can be transferred into retirement phase income streams, including most pensions and annuities.

TRIS (transition to retirement income streams)

These superannuation income streams assist super fund members to gradually move into retirement by allowing them to access a limited amount of their super prior to full retirement. A TRIS is not in the retirement phase until the member reaches 65, or meets a condition of release.

TSB (total superannuation balance)

This measures the value of your total superannuation interests in all your super funds and is usually calculated at the end of the financial year. Your TSB is used to determine if you are eligible for certain super-related measures for the next financial year.

Speak to the superannuation experts

Do you want to discuss any of these common super terms in more detail or need some guidance navigating the intricate rules of a self-managed super fund?

Contact the team at LDB Group for expert advice on optimising your superannuation.

Give us a call on (03) 9875 2900 or fill in the form below.