Australian
Securities and Investments Commission (ASIC)
ASIC is the independent Australian government body, which enforces and regulates company and financial services laws in Australia to protect consumers,
investors and creditors. ASIC reports to the Commonwealth
Parliament, the Treasurer and the Minister for Superannuation and Corporate Law.
Budget
A
budget is the sum of your income minus the sum of
your expenses over a defined period. When you work
out your budget you can see if your outgoings are
greater than your incomings.
Cash management account
Similar
to a transaction account, they can be used for day-to-day
banking, such as depositing your pay, or making
withdrawals and paying bills. They usually pay higher
rates of interest, but most cash management accounts
require you to maintain a minimum balance.
Credit
This
term has different meanings, depending on the situation.
For example, if your account is in credit, that
means you have money in your account that is available
for you to use. So, if you have $10 in your account,
your account is $10 in credit. It can also mean
borrowed money that allows you to obtain goods now
but to pay for them later. Typical forms of credit
include credit cards, personal loans, overdrafts
and home loans.
Debt
Your debt is the amount of money you have borrowed
from a bank or other lender.
Direct debit
Sometimes you can authorise a business to take money
directly out of your bank account to pay a bill.
For example, if you have a telephone bill, you can
authorise your telephone company to withdraw money
from your account automatically to pay for your
bill. Direct debits are very convenient, but rescinding
the arrangement requires formal notification to
the business.
Disposable income
The
amount of after-tax income that is available to
divide between spending and personal savings. It
is sometimes referred to as your "take home pay".
However, your disposable income is the net result
of your income after you have taken account of your
expenses.
Dividend
Payment
made from a company to its owners (shareholders)
from profits made by the company.
Expense
Money
you pay out, including for housing, groceries, transportation,
utilities, medical/health, insurance, clothing,
entertainment, education and travel.
Financial Ombudsman Service (FOS)
FOS is a free and independent dispute resolution service that considers complaints about a financial service including banking, credit, loans, insurance, insurance broking, financial planning, investments, stock broking or superannuation. The Ombudsman is able to investigate disputes and make decisions that are binding on the financial services provider.
Imputation credit
When
an Australian resident shareholder receives a dividend,
they may also receive an imputation credit for any
tax already paid by the company. The shareholder's
tax liability can then be reduced by the amount
of the tax credit. Also known as franking or dividend
imputation. |
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IncomeMoney
you receive, including your salary or wages, interest
from bank accounts, dividends from shares, rent
from an investment property or board from an adult
child.
Inflation
An
increase in the prices of goods and services in
the economy.
Managed fund
A
type of investment that pools the assets of many
investors into a single fund. Usually the investors
have a common investment objective and strategy.
Managed funds include property trusts, share funds
and cash management trusts.
Payday loan
A small short-term loan between paydays, often available
to people who are unable to obtain credit through
mainstream providers. The loans often come with
exceptionally high interest rates and other charges.
Personal loan
A loan available from a mainstream provider, such
as a bank, building society, credit union or finance
company.
Personal superannuation contributions
The
amount that you voluntarily contribute to your superannuation
fund from your take home pay. This is in addition
to the contributions your employer makes on your
behalf. It is sometimes called private superannuation.
Return
The amount of money earned on an investment, usually
expressed as an annual percentage.
RiskThe
variability of returns from an investment.
Savings (deposit) accountAn
account often used to save money, perhaps for a
holiday or Christmas spending. Depending on the
account, if you have a balance above a minimum level
you may be rewarded with higher rates of interest.
Some savings accounts have a monthly fee with a
limit on withdrawals.
Term deposit
An
account that offers a higher rate of interest, but
'locks' your money away for a set period. They are
a good option if you don't want to touch your savings.
Transaction account An
account that lets you manage your day-to-day deposits
and withdrawals. Depending on the account, it may
be a basic account or have other account access,
such as an overdraft facility. Some transaction
accounts may have a monthly fee and may have limited
or unlimited free transactions. |
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