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Account based pension
A regular payment made from a superannuation fund, subject to a minimum amount. An account based pension gives you full access to your capital, making it more flexible than some other superannuation pensions that do not allow access to your capital. See the Superannuation module.
Accumulation fund
A type of superannuation fund you can contribute into which does not provide a guaranteed end benefit. Your account balance includes your contributions and earnings (positive or negative) less any expenses or tax. See the Superannuation module.
Accumulation phase
The period which money is contributed to superannuation usually during your working years. In most cases, the accumulation phase ends once a pension or income stream is commenced from the fund. See the Superannuation module.
Advanced care directive
An advanced care directive (ACD), often referred to as a ‘Living Will’, is a document that describes your future preferences for medical treatment in anticipation of a time when you are unable to express them.
Age Pension
The Commonwealth Government provides fortnightly income support and a range of other concessions to Australians over 66. Eligibility for the pension is based on residency and income and assets tests. The pension qualifying age is scheduled to increase over time.
Aged care
As you reach your elderly years there may come a time when you need to consider the prospect of asking for help with regards to looking after yourself. This help may come in the form of aged care services delivered by an aged care service provider.
Aged Care Assessment Team
ACATs (or ACAS in Victoria) are teams of health professionals that assess your eligibility for aged care services where complex care may be appropriate, such as the Home Care Package or entrance into a residential aged care facility.
Aged Care Quality and Safety Commission
The Aged Care Quality and Safety Commission handles complaints about residential aged care facilities and services delivered under the Commonwealth Home Support Programme and Home Care Package.
Aged care services
There are several different types of aged care services available. Each is designed with the aim of meeting your specific and changing needs as you get older, whether that be whilst residing in your own home or alternatively in a residential aged care facility.
Annuity
An annuity is a product you buy from a life insurance company. You invest your money and in return they guarantee to pay you an income; either for your life or for a fixed term (that may range anywhere from 1 to 50 years).
APRA
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry.
ASFA Retirement Standard
The Association of Superannuation Funds of Australia (ASFA) Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years.
ASIC
The Australian Securities and Investments Commission (ASIC) is Australia's corporate, markets and financial services regulator.
Assessable income
Gross income or 'before tax' income, before any applicable deductions, offsets or rebates. See the Tax & Structures module.
Asset allocation
The distribution of investments among various asset classes (such as shares, property, fixed interest securities, and cash) or sectors within these asset classes. See the Investments module.
Australian Financial Services Licensee
An Australian Financial Services Licensee is a financial service provider licensed by ASIC to operate in their chosen areas of financial advice, financial product provider, markets or trustee service.
Australian shares
An asset class characterising proportional ownership of companies listed on the Australian Stock Exchange. In most cases, a relatively liquid investment as you can typically sell your shares and receive the proceeds within a number of days. See the Investments module.
Australian Taxation Office (ATO)
The Australian Taxation Office (ATO) is the principal revenue collection agency of the Australian government. The ATO has responsibility for administering the Australian federal taxation system, superannuation legislation, and other associated matters.
Basis point
A term which is commonly-used within financial markets to describe small percentage changes. 1 basis point equals 0.01%. 100 basis points equals 1%. For example, the ASX200 moved up slightly today by 3 basis points, which equates to 0.03%.
Benchmark
The standard against which performance can be measured. A benchmark can be an index which matches the investment's strategic objective. For example, the ABC Health Care Fund benchmarks their performance against the S&P/ASX200 Health Care Index.
Benchmark asset allocation
The asset allocation applying to the benchmark portfolio. Typically, it is the asset allocation which the trustees have decided is most appropriate for a superannuation fund to meet its investment objectives over the long term.
Beneficiaries
In a will, beneficiaries are the individuals or organisations that will benefit from the Will. In other words, those people or entities who may be entitled to a distribution. See the Estate Planning module.
Beneficiary Nomination (superannuation)
Superannuation proceeds on death can be directed through a superannuation beneficiary nomination. The beneficiaries you could nominate include your Estate, if you want your superannuation to be dealt with through your Will, your spouse, or your children. See the Superannuation module.
Benefit Payment Period
This is the duration that the insured amount of an income protection or salary continuance policy will be paid to you if you were unable to work. See the Insurance Planning module.
Binding Nomination (superannuation)
On the member's death, the trustee's discretion is removed and the payment of the deceased member's benefit is paid to the person or entity nominated. This increases the certainty of who received the death benefit payment when compared to standard beneficiary nominations. See the Estate Planning module or the Superannuation module.
Budgeting
A budget helps you work out how much you earn, how much you spend and your remaining surplus (or deficit). See the Cashflow & Compounding module.
Business Expenses insurance
Provides financial assistance to businesses that have an unforeseen event happen, such as an injury or illness to a key staff member, to assist with payment of the ongoing expenses of the business. See the Insurance Planning module.
Business Interruption insurance
Covers the reduction in your business income due to damage to your property. Examples of damage may include flood, fire or theft. See the Insurance Planning module.
Buy/sell agreement
Is a legal agreement made between owners of a business. It generally states that on the death or incapacity of one of the owners that the remaining owner(s) will buy the deceased or disabled owner's share. See the Estate Planning module.
Call option
Is a contract giving you the right to buy a certain amount of an underlying asset at a certain price (known as the strike price) within or at a stated time. See the Debt & Leverage module.
Capital gain
A capital gain generally occurs when you sell an investment for more than you bought it. The capital gain is the difference between the sale proceeds and cost of acquisition. See the Tax & Structures module.
Capital gains tax
A tax on the taxable portion of the increase in the capital value of investments or business value, typically realised when the investment is sold. See the Tax & Structures module.
Capital loss
A capital loss generally occurs when you sell an investment for less than you bought it. The capital loss is the difference between the net sale proceeds and cost of acquisition. See the Tax & Structures module.
Cash
Includes various products such as bank accounts or the cash you have in your wallet/purse. Cash may be a suitable investment for people that require liquidity (quick access to your money). See the Investments module.
Centrelink
A Government agency that is responsible for administering the payment of social security benefits.
Choice of superannuation fund
This is the ability for employees to select which super fund their compulsory employer contributions are paid to. See the Superannuation module.
Commodities
Primary products or raw materials used for consumption purposes by a range of end users. The main categories are: oil and gas, base metals, precious metals and agricultural products (such as food and cotton).
Commonwealth Home Support Programme
If you require entry-level care to stay living independently in your home for longer, the Commonwealth Home Support Programme (CHSP) may be able to help.
Compound interest
Compound interest is where you invest money into an interest bearing account and this interest is kept within the account. The result over time is that you are then earning interest on your interest, as well as your original capital sum. See the Cashflow & Compounding module.
Comprehensive car insurance
This type of motor vehicle insurance provides comprehensive cover for damage to your car, and the other car if you are considered at fault, in the event of accident or theft. See the Insurance Planning module.
Concessional contribution
Is a contribution made to a superannuation fund where a tax deduction is claimable by the person making the contribution. The contribution could be made by you or by your employer. See the Superannuation module.
Concessional contribution caps
The Government limits the amount that individuals can claim as concessional contributions (generally taxed at only 15%) in any tax year. For 2020/21 the standard concessional contributions limit is $25,000 regardless of age. This limit is subject to indexation but may not increase each year. See the Superannuation module.
Conditions of release
Is the general term used to describe the various means by which it is possible to access superannuation benefits that are normally preserved (untouchable) until you reach a prescribed age. Examples of conditions of release are: reaching your preservation age and electing to permanently retire; reaching your preservation age and starting a transition-to-retirement income stream; ceasing employment on or after age 60; reaching age 65; as well as, permanent incapacity, temporary incapacity, terminal medical condition and severe financial hardship. See the Superannuation module.
Contents insurance
Insures the contents of your residence, whether you own the residence or not. It provides protection in the event of theft, fire or similar. See the Insurance Planning module.
Contribution splitting
You can ask your superannuation fund to transfer some of your before-tax contributions from your super account to your spouse's super account. Contribution and age limits apply. See the Superannuation module.
Corporate bonds
Involve lending an amount of money to a company for a specified timeframe for which they commit to paying you an interest amount, most commonly referred to as the coupon rate. See the Investments module.
Cost Base
This is the total cost of buying an asset. See the Tax & Structures module.
Death benefit
The amount payable to your beneficiaries and/or dependants in the event of your death. This may include insurance proceeds and/or a superannuation balance. See the Superannuation module.
Debt
Relates to an amount of money that must be repaid over some time period. The most well known example of debt is possibly a personal mortgage on your primary residence. See the Debt & Leverage module.
Deductions
Are generally expenses or outgoings that are incurred to earn your income. See the Tax & Structures module.
Defined benefit fund
Is a superannuation fund where you know in advance the benefit amount you'll receive at retirement. This benefit is typically based on your salary, years of service and a multiple defined by the fund. It is the employer's responsibility to ensure the fund is managed appropriately so that enough money is available to pay for benefits when they are due. See the Superannuation module.
Defined benefit pension
Is a guaranteed income for life payable to you by an employer superannuation fund or a Government superannuation fund. See the Superannuation module.
Derivative
A tradable security, the value of which is derived from the actual or expected price of an underlying asset. Examples of derivatives are futures, options and swaps. Underlying assets can include bonds, commodities, currencies, equities, market indices and interest rates. See the Investments module.
Discretionary trust
Is a trust that does not have units or unit holders. Instead the trustee(s) have discretion as to how assets and/or income of the trust are to be distributed amongst the beneficiaries. See the Tax & Structures module.
Disposable income
The level of household income available for spending on a discretionary basis once taxes have been deducted. See the Cashflow & Compounding module.
Distribution
The income you receive from a trust, such as a managed fund, family trust or similar. A portion of the income payment may be a capital return. See the Investments module.
Diversification
This is a term that is often referred to as 'not having all of your eggs in one basket'. There are different levels of diversification. If you have $10,000 to invest, you could put some in cash, some in property, some in shares and some in fixed interest. This is an example of diversification across different asset classes. You can also have diversification within asset classes. For more information, see the Investments module.
Dividend
Is the share of company profits paid to shareholders. Dividend income is typically taxable income to the shareholders. See the Investments module.
Dividend Yield
Is the dividend per share divided by the current share price, similar to rental yields from property. See the Investments module.
Dollar cost averaging
Making smaller investments on a regular basis over a period of time. By doing this you are buying at the 'average' price of a share or a managed fund over time rather than trying to pick the highs and lows.
Earnings Yield
This is the company earnings per share divided by share price. See the Investments module.
Enduring Guardianship
Is a role that generally gives someone legal authority to make medical and life decisions on your behalf. See the Estate Planning module.
Equities (Shares)
One of the major asset classes (others are cash, fixed interest securities and property). Also known as a stock or equity, a share is part ownership of a company. Profits earned by the company may be distributed to shareholders (a 'dividend' payment). The value of shares can rise and fall over time. See the Investments module.
ERFs
Eligible rollover fund's (ERF's) can accept member benefits from other superannuation funds for people who may have lost contact with that fund or are no longer eligible for membership of that fund. All superannuation funds are required by law to nominate an ERF to hold the balances of their lost or ineligible members. See the Superannuation module.
Estate Planning
Is the planning of who gets what assets, at what time and in what manner, upon your death. See the Estate Planning module.
ETFs
Exchange Traded Funds (ETFs) are funds that track market indexes like the All Ordinaries, S&P/ASX200, S&P/ASX Small Ordinaries, etc. When you buy shares of an ETF, you are buying shares of a portfolio that tracks the yield and return of its native index.
Executor(s)
Is the administrator of the Will. He/She/They need to gather the assets of the deceased and distribute the assets to the beneficiaries according to the Will. See the Estate Planning module.
Financial adviser
A person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation. See the Building Your Team module.
Financial Services Guide
A guide that contains information about the entity providing you with financial advice. It should explain the financial service offered, the fees charged and how the person or company providing the service will deal with complaints.
Fixed interest
This asset class includes investments such as term deposits, government bonds, corporate bonds and debentures. These are often called income securities. See the Investments module.
Franking credit
Represents tax already paid by a company on dividends and can affect the after tax return to you. The credit may also be called an imputation credit. See the Investments module.
Futures contract
Is an agreement to trade something of value at a specific time in the future. See the Debt & Leverage module.
Gearing (into investments)
Occurs when you borrow funds to purchase an investment or a number of investments. See the Debt & Leverage module.
Gearing ratio
This is calculated by dividing the borrowed funds by the investor's contribution. See the Debt & Leverage module.
General insurance
Insures against loss or damage to "general" items like cars, houses and contents. See the Insurance Planning module.
Goods and Services Tax
Is a common tax that many businesses are required to collect and pay to the Australian Taxation Office. GST is currently calculated at a rate of 10% on most goods and services in Australia. See the Tax & Structures module.
Government Bonds
A loan to the government for a specified timeframe for which you receive an interest amount, most commonly referred to as the coupon rate. See the Investments module.
Government super co-contribution
Is available to certain individuals who make non-concessional contributions (where no tax deduction is claimable) to a super fund. The co-contribution is normally 50% of eligible personal contributions up to a maximum of $500. The amount of the co-contribution is reduced by 3.333 cents for each dollar that your income exceeds the lower income threshold. See the Superannuation module.
Gross Annual Salary (before tax)
This is the amount of money you expect to earn each year before tax from salary or wages. See the Tax & Structures module.
Gross rental yield
Is the annual rent (before expenses) divided by the value of the property. See the Investments module.
Growth assets
Growth assets include property and shares. Over the longer term they are generally expected to provide higher returns and higher risk. An investment option with more growth assets may suit longer term investors or those comfortable with the risk of market volatility over the medium to longer term. See the Investments module.
Hedging
Buying or selling one investment to protect against loss in another. For example, purchasing a put option (the right to sell at a predetermined price) on a share in a portfolio is an example of hedging that asset. It will protect against the possibility of the share falling below a certain price. Another example would be locking in exchange rates on overseas investments.
High income earner contributions tax
An additional tax on concessional contributions (non-excessive) where a member has earnings in excess of $250,000. See the Tax & Structures module.
Home Care Package
If you require complex care to stay living independently in your home for longer, a Home Care Package may be able to help.
Home insurance
Covers you for damage or loss to your home. It insures your home for a particular value. See the Insurance Planning module.
Hybrid trusts
Are typically a blend of a unit and discretionary trust. In such a trust, the Trust Deed may dictate which beneficiaries can receive income and/or capital distributions. See the Tax & Structures module.
ICR
Indirect Cost Ratio (ICR) measure the total indirect costs of managing a fund and includes management costs. Indirect costs can include performance fees, investment-related legal, accounting, auditing and other operational and compliance costs.
Income Protection insurance
Provides a regular income payment if you cannot work, following a waiting period, for the term of the benefit period. Similar to salary continuance insurance. See the Insurance Planning module.
Industry super funds
Were established to provide specialist, not-for-profit super funds for employees and businesses within certain industries, such as building, hospitality and health. These funds have now become available to employers and individuals who operate outside of the industries that established them. See the Superannuation module.
Inflation
Refers to price inflation - increase in the general price level of goods and services in the economy, usually measured in terms of movements in the consumer price index (CPI). Can also be used as a measurement of salary increases in general wages and salaries. See the Cashflow & Compounding module.
Insurance excess
Is the amount you will personally have to pay before you receive the insurance benefit. See the Insurance Planning module.
Insurance premiums
The regular payments made to an insurance company for ownership of an insurance policy. For personal insurance the premium amounts vary depending on factors such as the amount of insurance cover you choose, your age, your health, and your occupation. See the Insurance Planning module.
Interest only loan
This is a loan where only the interest on the loan is required to be paid. With this loan there is no requirement to repay principal (or capital) on an ongoing basis. See the Debt & Leverage module.
Intestate
This is where you die without a will or with an invalid will. See the Estate Planning module.
Investment platform
Is a reporting and administration facility used to administer and report on your investments. The more common types of investment platforms are Master Trusts and Wrap Accounts. See the Investments module.
Investment return
The change in value of an investment over time (positive or negative) it also includes any income received. This is usually expressed as a percentage. See the Investments module.
Land Tax
Is a tax levied on the owners of land. Land that may attract land tax includes vacant land, investment properties, a holiday home and commercial properties. See the Tax & Structures module.
Leveraging
Occurs when you use borrowed funds to gain a greater exposure to an asset than you would otherwise have if you just used your own monies. See the Debt & Leverage module.
Life insurance
Provides a payment on a person's death. When the insured person dies, a lump sum is paid to the owner of the policy. See the Insurance Planning module.
Lifetime pensions
An income stream paid from a superannuation fund that runs until your death. See the Superannuation module.
Line of Credit Facility
A Line of Credit is like a negative bank account. You can repay as much as you like and also withdraw as much as you like up to the limit of the loan. There may be no fixed repayments as such. See the Debt & Leverage module.
Liquidity
The ability of an investment to be quickly converted into cash. The more liquid an investment, the easier it is to dispose of for cash. See the Investments module.
Loan to Valuation Ratio (LVR)
The percentage of borrowings in relation to the total valuation of the investment. To calculate the LVR divide the asset value by the loan amount. See the Debt & Leverage module.
Managed Fund
Allows you to pool your investment monies with other investors and have a professional fund manager control the portfolio for you. You are basically outsourcing the investment decisions to the fund manager. There are managed funds available across all of the asset classes, even cash. See the Investments module.
Margin Lending
Is a gearing (or borrowing) arrangement that can be used to borrow to invest into shares and managed funds. See the Debt & Leverage module.
Marginal tax rates
The rate at which tax is incurred on an additional dollar of income, based on taxable income thresholds. The higher the income, the higher the tax rate. See the Tax & Structures module.
Member statement
A statement issued to members at least annually by a super fund. The statement generally includes the member's account balance, contributions received over the period, investment earnings (could be positive or negative), fees and charges deducted, and details of any insurance the member holds.
Money preferences
Are something you have an advanced tendency for, an increased interest in, and a greater liking of, when compared to something you don't have a preference for. For example, someone may have a preference for property over shares, or employment over owning a business. See the Money Personality module.
Motor Vehicle insurance

An insurance policy which provides a financial benefit on accident, damage or theft relating to a motor vehicle. See the Insurance Planning module.

Negative gearing
Negative gearing occurs when the expenses of holding an investment are greater than the income it produces. This means the investment is providing negative cash flow. Depending on your circumstance you may be able to offset this against other taxable income. See the Debt & Leverage module.
Net tax payable
Is the Gross Tax on Taxable Income, plus Medicare Levy, less Tax Rebates. See the Tax & Structures module.
Non-concessional contribution
Is a contribution made to a superannuation fund for which a tax deduction is not claimable. As an example, you could contribute cash from your own personal bank account into super and not claim a tax deduction. See the Superannuation module.
Non-concessional contribution cap
If you are under age 65, a maximum limit of $100,000 per year or $300,000 every three years (known as the ‘3-year bring forward rule’) applies (for 2020/21). No non-concessional contributions are allowed if your superannuation balance at the start of the year is over $1,600,000 (and the 3-year bring forward rule phases out from $1,400,000). If you are over the age of 65, the 3-year bring forward rule ceases to be available and it is limited to $100,000 of non-concessional contributions a year (where allowable) unless you started a bring-forward period before you reached age 65 and it is still operational. See the Superannuation module.
Palliative care
When you are faced with a life-limiting or terminal illness, palliative care may be an appropriate consideration. It aims to allow you and your family to focus on making the most of the time remaining, whilst you receive the care and support that you need.
Pension phase
Commences when you begin to draw down an income from your superannuation (called a pension). See the Superannuation module.
Personal insurance
Provides financial cover for sickness, illness and death. The asset being protected is essentially you, your health and your ability to earn an income. See the Insurance Planning module.
Portfolio
An investor's collection of investment holdings, usually with reference to its composition. That is, the mix of different classes of securities, such as bonds, property, shares, and cash; or if in a single asset class, the mix of different sectors and stocks. See the Investments module.
Portfolio construction
The process of identifying which asset classes to invest in, and in what proportions. See the Investments module.
Positive Gearing
Positive gearing occurs when the income from an investment is higher than the expenses for the investment. This creates a positive cash flow. See the Debt & Leverage module.
Power of Attorney
Is a legal document that enables someone else to act on your behalf, particularly regarding financial decisions. This may be to buy and sell shares, manage your investment property or operate your bank accounts. See the Estate Planning module.
Preservation
This is where your superannuation is locked away, or preserved, until you reach your preservation age which is at least age 55 and retired. In other words, your preservation age is the minimum age you must attain to be able to access your superannuation when you have retired. See the Superannuation module.
Price to Earnings Ratio (P/E Ratio)
This is the price of the share divided by the earnings per share. The PE ratio represents the number of years it will take to recover the price you've paid for the share based on current variables remaining stable. See the Investments module.
Principal and interest loan
This is a loan where the principal (the amount borrowed) and interest is repaid over the life of the loan. See the Debt & Leverage module.
Principal and interest loan with redraw facility
With this type of loan, if you pay off more than is required you have access to the additional payment through a redraw facility. This allows you to re-borrow the amount of money that you are 'in front'. See the Debt & Leverage module.
Product disclosure statement
Is a written document that details the main features of a superannuation fund or investment including fees, investment options, insurance options and procedures. The product disclosure statement can be used when comparing superannuation funds and investments. See the Superannuation module.
Profit and Loss
Is a statement outlining the amount of money coming in and going out of an entity. Businesses prepare Profit and Loss statements; however, few individuals seem to take the time to assess their personal Profit and Loss position regularly. See the Cashflow module.
Property
One of the major asset classes (others are cash, fixed interest securities and shares) of investments. It includes commercial, industrial and residential real estate. Property investments normally provide rental income and can rise and fall in value over time. See the Investments module.
Property trust
A unit trust which invests directly or indirectly in property assets. See the Investments module.
Put Option
It is a contract that gives you the right to sell a particular asset at a particular price within or at a specific time. It is the opposite to a Call Option. See the Debt & Leverage module.
Regional Assessment Service
The Regional Assessment Service (RAS) is a national assessment workforce that assess your eligibility for aged care services where entry-level care at home may be appropriate, such as the Commonwealth Home Support Programme.
Residential aged care facility
As you age, you may find that you are unable to continue residing at home due to a variety of reasons. In this instance, a residential aged care facility may assist you to receive the support that you need to continue living as independently as possible.
Residential mortgage
Is an amount of debt secured on a residential property. A commercial lender, such as a bank, non-bank, building society or credit union, lends you money to help fund the property and takes security over the property. See the Debt & Leverage module.
Respite care
Providing constant, daily care for a person requiring care can be demanding on a carer and a short-term break may be needed occasionally. Respite care facilities can cater for these short-term breaks, by looking after the person requiring care whilst the carer is absent.
Retail superannuation funds
Is a type of superannuation fund typically offered by fund managers or banks. There is a wide range of retail super funds on offer. See the Superannuation module.
Reverse Mortgage
This type of loan typically assists retired people to fund their retirement lifestyle by drawing down the equity they have built up in their home. See the Debt & Leverage module.
Risk Capacity
Refers to an individual’s ability to take risk, without jeopardising their financial goals. Risk capacity has to do with your financial situation, as well as your age and the time you have to invest. For example, if you are able to save a lot of your income each year, or you have more wealth available to you from other sources, you can better weather any short-term downturn in the market as you pursue potentially higher, long-term returns. See the Investments module.
Risk Tolerance
Refers to an individual’s emotional or psychological willingness to take risk. Traditionally, risk relates to the volatility of an investment or investment portfolio. For example, an investor with a low risk tolerance is more suited to stable investments, where the value of the investments has reasonably small fluctuations. An investor with a high risk tolerance would be comfortable with investments whose value can fluctuate greatly. See the Investments module.
Salary Continuance
Is often the term used to describe the 'income protection' policy that can be held through superannuation. This type of policy will also have an insured amount, a waiting period and a benefit period. See the Insurance Planning module.
Salary sacrifice
Occurs when an employee agrees to forgo part of their salary in return for additional super contributions or other non-cash benefits (also known as salary packaging). See the Superannuation module.
Self managed super fund (SMSF)
Is a private superannuation fund that the member(s) also manage and control with trustee responsibilities, either as individual trustees, or as directors of the trustee company. There may be no more than four members in a SMSF. See the Superannuation module.
Self-employed
'Self-employed' means you are earning 90% or more of your income from your own trade or business as a sole trader, rather than earning wages or salary as an employee.
Spouse contribution
Is a contribution made to a superannuation fund by an individual on behalf of their spouse. There is a possible tax rebate for the contributing spouse on contributions up to $3,000. See the Superannuation module.
Stamp Duty
Is a duty levied on certain transactions. This can include transferring the registration of a car, buying a property, signing a lease or taking out a new mortgage or loan. See the Tax & Structures module.
Super Fund consolidation
Moving all your superannuation funds into one account (known as 'consolidating your super'). This may help you save on fees and make managing your super easier. It is important not to lose insurance that is required in this process.
Superannuation
A long-term savings arrangement which operates primarily to provide income for retirement. See the Superannuation module.
Superannuation Guarantee (SG)
By law, your employer must pay a set percentage of your ordinary salary or wages into a super fund at least every three months. The percentage is set by the Government. See the Superannuation module.
Superannuation platforms
Provide a wide variety of investment choices under the one superannuation fund. In other words, you can still have one superannuation fund, but you may have many different fund managers, or in some cases, direct shares. See the Superannuation module.
Superannuation splitting
Upon the breakdown of a couple's relationship, superannuation can be split in the accumulation phase to facilitate a financial settlement.
Superannuation Trustee
All registered super funds require a trustee. A trustee's responsibilities include ensuring that the fund complies with the law, making investment decisions and running the day to day operations of the fund for the benefit of its members. In Self Managed Superannuation Funds the trustee is either a private company run by its members or the individual members themselves. See the Superannuation module.
Sustainability risk
Relates to the reduced sustainability which occurs when you attempt to follow a strategy or plan that simply doesn't suit your Money Preferences. See the Money Personality module.
Syndicate
Is where a number of people or entities come together and pool their money to buy an investment or a pool of investments. See the Investments module.
Tax File Number (TFN)
Your personal identification number for tax and super. See the Tax & Structures module.
Tax offset
After your taxable income has been calculated in any year, a tax offset is used to reduce the amount of personal tax you will have to pay. See the Tax & Structures module.
Taxable income
Is your assessable income reduced by any allowable deductions, but before any applicable taxes, offsets or rebates. It's usually the first item listed on your Notice of Assessment (or where applicable, Refund Notice) issued annually from the Australian Tax Office. See the Tax & Structures module.
Testamentary Trust
Is a trust which is established after a person dies to hold assets for the benefit of the beneficiary or beneficiaries. See the Estate Planning module.
Third Party Compulsory insurance (green slip)
This insurance covers the driver for injuries that he or she may inflict on themselves or a third party in an accident. See the Insurance Planning module.
Time horizon
The period over which an investment objective is to be realised. Time horizon is a critical factor for all investors in determining the types of investments they should make or, at least, the amount of risk they are prepared to carry.
Total & Permanent Disability insurance
Insurance policy that provides a lump sum payment in the event you become totally & permanently disabled and are therefore unable to work again. See the Insurance Planning module.
Transition to retirement pension (accumulation phase)
Is an income paid from superannuation that you generally can't make lump sum withdrawals, and must be between 4% and 10% of the account balance. These conditions apply until another condition of release is met, such as reaching age 65. After this point, if retained, it is referred to as a transition to retirement pension (pension phase). See the Superannuation module.
Trauma insurance
Provides a lump sum payment for those who suffer a major health trauma and is paid following diagnosis of the traumatic event. See the Insurance Planning module.
Trust Deed
Outlines the rules of a Trust. Sometimes a Constitution is used instead, for example, for a managed investment fund. See the Tax & Structures module.
Trustee(s)
Is the person/people that control the Trust, and are responsible for managing the trust assets and the day to day running of the trust. See the Tax & Structures module.
Unit Holders
Are investors who own units in a unit trust. Unit holders may receive income and/or capital distributions from the Trust. See the Tax & Structures module.
Unit trust
Is a trust where units are issued in the trust to unit holders. This is how most large publically offered managed investment funds operate. See the Tax & Structures module.
Volatility
The degree to which an investment is expected to go up and down in value over time e.g. shares are more volatile than cash. See the Investments module.
Waiting period
Is the length of time from when you stop work before the insurance policy will start paying you an income. See the Insurance Planning module.
Will
Is considered to be the main document to facilitate the distribution of an individual's Estate assets. See the Estate Planning module.
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