Glossary of terms

Absolute return investments	Absolute return investments aim to add diversification for your portfolio by seeking to provide investment returns that have a low correlation to traditional asset classes (for example, cash, fixed interest and shares). Investment returns may be higher than traditional asset classes and may also provide positive returns when returns from traditional asset classes are falling. It is important to remember that absolute return investments can carry high risk.
Approved ASX listed securities	CHESS sponsored securities listed on the ASX available within the Fund.
Available cash	The amount of cash accessible in your Cash Account for transacting and redemptions, after taking into account outstanding orders, fees and the minimum cash requirement.
Child	For super and tax law purposes, a child of a person includes: an adopted child, a stepchild or an ex nuptial child of the person a child of the person's spouse, and someone who is a child of the person within the meaning of the Family Law Act 1975.
Compassionate grounds	A condition of release for preserved and restricted non-preserved superannuation benefits. In limited circumstances, you may apply to the Australian Prudential Regulation Authority to have your benefits released as a lump sum to pay for certain expenses relating to: medical treatment for you or your dependants preventing foreclosure of a mortgage or power of sale over your home modifying your home or vehicle to accommodate special needs arising from a severe disability palliative care expenses expenses associated with your dependant's palliative care, death, burial or funeral. Benefits paid under this condition of release are limited to an amount determined by APRA.
Concessional contributions	Generally contributions that your employer makes, or that you make personally and claim as a tax deduction. These are generally included in the assessable income of the Fund and taxed at 15 per cent. There is an annual limit on the amount of concessional contributions you can make, known as the concessional contributions cap.
Concessional contributions cap	The annual limit that applies to the total of your concessional contributions on a per person per annum basis. In the 2010/2011 financial year, the concessional contributions cap is $25,000. A transitional limit of $50,000 per annum applies from 1 July 2009 to individuals who are aged 50 or more at any time in a financial year until the financial year ending 30 June 2012.
Condition of release	A condition you must meet before you can access your preserved and restricted non-preserved benefits. The conditions of release are set down in superannuation legislation. Examples are retirement, reaching preservation age, reaching age 65 and permanent incapacity. Some conditions of release have restrictions on the amount of, or form in which you can take your benefits while others (such as retirement) allow unrestricted access.
Directed termination payment	An employment termination payment that is paid directly into superannuation under transitional rules that apply until the financial year ending 30 June 2012. These payments must be made under a qualifying written contract that was in place before 10 May 2006.
Disability superannuation benefit	A superannuation benefit that is paid to a person because he or she suffers from ill-health (whether physical or mental); and two legally qualified medical practitioners have certified that, because of the ill-health, it is unlikely that the person can ever be gainfully employed in a capacity for which he or she is reasonably qualified because of education, experience or training. These benefits can qualify for additional tax concessions.
Employment termination payment	A lump sum payment you may receive from your employer in consequence of the termination of your employment (eg a golden handshake). From 1 July 2007 these payments are unable to be rolled over unless they qualify for transitional rules.
Excess concessional contributions	Concessional contributions in excess of the concessional contributions cap. These contributions may be subject to excess contributions tax.
Excess non-concessional contributions	Non-concessional contributions in excess of the non-concessional contributions cap. These contributions may be subject to excess contributions tax.
First Home Saver Account payment	Payments into the Fund of a First Home Saver Account balance by way of a compulsory or voluntary superannuation contribution. These contributions are counted towards the non-concessional contributions cap.
Fund	Refers to the Macquarie Superannuation Plan, within which The Avenue Retirement Service is one of several products.
Illiquid investments	Broadly, an investment in relation to your interest in the Fund is an illiquid investment if: it is of a nature whereby it cannot be converted to cash in less than the time required to rollover or transfer a withdrawal benefit (typically 30 days) or it can be converted to cash within the 30 day time period, but converting it to cash within this period would be likely to have a significant adverse impact on the realisable value of the investment.
Interdependency relationships	Two people will typically have an interdependency relationship if: they have a close personal relationship and they live together and one or each of them provides the other with financial support and one or each of them provides the other with domestic and personal care. If two people have a close personal relationship but do not satisfy the other conditions referred to above because either or both of them suffer from a physical, intellectual or psychiatric disability, they may nevertheless have an interdependency relationship.
Low rate cap amount	The concessional tax threshold applying to the taxable component of lump sum superannuation benefits paid to individuals who have reached their preservation age but are under the age of 60. The low rate cap is a lifetime limit. The 2010/2011 amount is $160,000.
Mandated employer contributions	Compulsory contributions made by your employer, based either upon superannuation guarantee requirements or workplace awards.
Non-concessional contribution	Generally contributions made by an individual for which no tax deduction is claimed and therefore are not included in the assessable income of the Fund. There is an annual limit on the amount of non- concessional contributions you can make, known as the non-concessional contributions cap.
Non-concessional contributions cap	The annual limit on the amount of non-concessional contributions made for you. In the 2010/2011 financial year the cap is six times the concessional cap. If you are under 65 at any time in a financial year, you may `bring forward' up to two future years' contribution entitlements so as to contribute a maximum of three times the annual non-concessional contributions cap for a three year period.
Permanent incapacity	A condition of release for preserved and restricted non-preserved superannuation benefits. To qualify under this condition, the trustee must be reasonably satisfied that because of your ill-health (whether physical or mental), you are unlikely ever to engage in gainful employment for which you are reasonably qualified by education, training or experience. You must provide the trustee with specific documentation confirming your permanent incapacity. If you qualify, your benefits may be accessed as a pension, lump sum or combination of both. Certain tax concessions may apply if the benefit meets the definition of a disability superannuation benefit.
Proportioning rule	The rule requiring the tax components to be paid in proportion to the components of your superannuation interest in the Fund. In the case of a lump sum or rollover, the components will be determined in proportion to the tax free and taxable components of your superannuation interest in the Fund at the time of payment. You are generally unable to open more than one Super Division account so, for this purpose, your superannuation interest is your account. In the case of a pension, the payments from your Pension Division account (including pension payments and lump sums) are paid in proportion to the tax free and taxable components in the account at the time the pension commenced.
Spouse	For the purposes of super and taxation law, the spouse of a person includes: another person who is legally married to the person another person (whether of the same sex or a different sex) with whom the person is in a prescribed kind of relationship that is registered under a State or Territory law prescribed for the purposes of the Acts Interpretation Act 1901, and another person who, although not legally married to the person, lives with the person on a genuine domestic basis in a relationship as a couple.
Structured credit investments	Allow investors access to a portfolio of loans that have been issued by a bank or other financial intermediary. By investing into these loans, the investor assumes both the risk (eg default on repayment by the borrower) and return (interest paid by the borrower).
Release authorities	An authority issued by the ATO permitting a super fund to ‘release' funds in order to pay excess contributions tax.
Severe financial hardship	A condition of release for preserved and restricted non-preserved superannuation benefits under which you can access part of your benefits as a lump sum if you suffer severe financial hardship. To be eligible for release of benefits on the grounds of severe financial hardship, you must have been in receipt of Commonwealth income support for a minimum period and, depending on your age, must also be able to satisfy the trustee of your fund that you are unable to meet reasonable and immediate family living expenses. You must provide the trustee with specific documentation confirming that you meet these requirements.
Superannuation lump sum	Payments from superannuation entities other than income stream benefits.
Taxable component	The amount equal to the balance of your superannuation interest or pension account that is not tax free component.
Tax free component	The tax free component of your superannuation interest is broadly, the total of a ‘crystallised segment' and a ‘contributions segment' The ‘crystallised segment' is based on the withdrawal value of your interest as at 30 June 2007, less the amount of the post-June 83 component if it had been paid as a lump sum on that date. The ‘contributions segment' is broadly equal to the tax free contribution (or rolled over amount) received after 30 June 2007 in relation to that interest. The tax free component of payments from a pension account is determined as a fixed proportion at the time the pension commenced.
Temporary incapacity	A condition of release for preserved superannuation benefits. To qualify under this condition, you must suffer from ill-health (whether physical or mental) that caused you to cease to be gainfully employed but does not constitute permanent incapacity. Only insurance benefits can be accessed under this condition of release. Benefits can only be paid as a particular form of income stream.
Temporary resident permanently departing Australia	A temporary resident of Australia (excluding New Zealand citizens) who leaves permanently can apply to the ATO to have their benefits released as a lump sum. A temporary resident may apply online via the ATO website, or they can lodge a paper-based application (with supporting documentation where required). There are special tax rates applying to Departing Australia Superannuation Payments.
Terminal medical condition	A condition of release for preserved and unrestricted non-preserved superannuation benefits. Under this condition of release, if you are suffering from a terminal illness, you may be able to access your benefits as a tax free lump sum. To qualify, 2 registered medical practitioners must have certified that you suffer from an illness or have incurred an injury that is likely to result in your death within a period (the certification period) of 12 months of certification. One of these medical practitioners must be a specialist practicing in an area related to your condition. In addition, for each medical certificate, the certification period must not have ended. You must provide the trustee with specific documentation confirming your medical condition.