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Terms

ACCOUNT-BASED PENSION/ANNUITY

ACCOUNT-BASED PENSION/ANNUITY

Definition

A pension/annuity arrangement where the holder regularly withdraws a minimum amount, and can also access their capital. The holder has a choice in how the funds are invested. The pension/annuity continues until death or until the funds run out.

ACCOUNT STATEMENT

ACCOUNT STATEMENT

Definition

A record summarising all the transactions on your account and any fees charged or interest paid over a given period. Depending on your bank and the type of account, you may be able to receive statements fortnightly, monthly, quarterly, bi-annually or annually. Statements may be sent to you in the mail or accessed via the Internet.

ACCUMULATION

ACCUMULATION

Definition

is a fund where the benefit a member receives is the total of defined contributions to the fund plus earnings on those contributions, minus tax, fees and other charges. Most new superannuation funds are accumulation funds. Members carry the investment risk.

(sometimes called defined contribution)

AFSL

AFSL

Definition

An Australian Financial Services Licence (AFSL) is issued by the Australian Securities and Investments Commission (ASIC) under section 913B of the Corporations Act, which authorises a person who carries out a financial services business to provide financial services, including issuing of a financial product or giving of financial product advice.

AGE PENSION

AGE PENSION

Definition

Income provided by the Government to individuals of a certain age who meet certain tests, such as the income test and assets test.

ANNUITY

ANNUITY

Definition

A product bought from a life insurance company to provide an income stream in retirement.

APRA

APRA

Definition

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. It supervises banks, credit unions, building societies, insurance companies and regulated superannuation funds.

ASIC

ASIC

Definition

The Australian Securities and Investments Commission (ASIC) is the independent Australian Government body that enforces and regulates company, financial services and consumer credit laws in Australia to protect consumers, investors and creditors. ASIC reports to the Commonwealth Parliament, the Treasurer and the Minister for Financial Services, Superannuation and Corporate Law.

ASSET

ASSET

Definition

An asset can be a physical asset, such as property, or a financial asset, such as bonds or shares. There are four main asset classes for investment products – cash, shares, fixed interest and property.

ATM

ATM

Definition

An abbreviation for Automatic Teller Machine. ATMs allow you to withdraw money from your bank account, providing you have ATM access, without having to go into a bank. Some ATMs allow you to deposit cash and cheques into your account, check your account balance, and transfer money between accounts. Many ATMs can be accessed 24/7.

AUCTION

AUCTION

Definition

Method of sale where interested buyers bid on a property in competition with each other.

AUTOMATIC ACCEPTANCE

AUTOMATIC ACCEPTANCE

Definition

Automatic acceptance is insurance cover that provides a basic level of cover within your super fund. This means that members don’t need to provide medical details to obtain this cover.