Glossary of Terms


Earnings Before Interest and Tax (EBIT)

The total of company gross revenue, less total expenses. Tax and interest costs are not counted.

Earnings per Share

A measure of a company’s performance, calculated by dividing the company’s net operating profit after-tax by the number of shares on issue.

Eligible Termination Payment

A lump sum payment from a superannuation fund, rollover fund, or an employer on termination of employment. If the recipient is under 65, payment can be paid into a superannuation fund, an ADF or a deferred annuity, to defer and/or minimise tax liability. This expression is no longer used for superannuation payments.

Emerging Markets

Developing countries that are experiencing or expect to experience higher growth over a number of years relative to more mature, developed economies. Brazil, Russia, India and China are considered emerging markets.

Employee Contributions (After Tax)

Contributions made (usually voluntarily) by employees from after-tax income.

Employer Contributions

The contributions paid by employers in accordance with legislation that requires employers to contribute to their employee’s superannuation fund to help reduce the strain on taxpayers to fund the retirement of senior Australians. Some employers pay higher contributions than required by law, either under Industry Awards or Employment Agreements, or just as per the terms of a negotiated wage or salary agreement with an individual employee or group of employees.

Entry ID

An identification code/number combination assigned by Mclowd to every transaction entered into the system. Letters at the start of the ID indicate the transaction type and method used to record it (e.g. INnnnn is an income transaction, EXnnnn is an expense transaction). Underlined IDs link to the detailed transaction and can be clicked to view or reverse it. See Section 2.4.1 GETTING STARTED: MISTAKES AND CORRECTIONS ―MCLOWDS EDITING METHODOLOGY


Stocks or shares.


Shareholders must purchase shares before the ex-date to be eligible for dividends. The ex-date is the date on which shares are quoted ‘without dividends’ included ―usually the fourth business day before the company closes its books.


A term meaning ‘without dividend’. The share price quoted on the basis that the seller, not the buyer, is entitled to the current dividend on the share. Ex-dividend is the opposite of ‘cum dividend’.

Expiry of Death Benefit Nomination

The ceasing of effect of a death benefit nomination due to the passing of a specified period of time. Generally, death benefit nominations by superannuation fund members expire after three (3) years, however the Australian Taxation Office has made special provisions for members of self-managed superannuation funds and nominations made by SMSF members do not generally expire unless the member has specified that the nomination is to expire on a given date or occasion.


The purchase of shares without the right to purchase additional shares at a price below the current market price.

Exchange Traded Fund (ETF)

A managed fund that tracks a market or sector index and is traded on a securities exchange like shares.

Exit Fee

A fee that may be charged by some funds when you make a full or partial withdrawal of your super.

Expected Rate of Return

The weighted average of all possible returns on an asset or portfolio. The weights represent the probabilities that the outcomes will occur.




about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

Leave a Reply