The number that a bank or other financial institution gives to a
particular account. This number plus the BSB identifies that
A pension purchased with superannuation money on retirement. You
can choose the amount of pension you receive each year within
minimum and maximum levels set by law. Your super money is
progressively drawn down until it runs out. For most
people aged 60 and over, these pension payments have been
tax-free since July 2007. Account-based pensions were previously
known as allocated pensions.
An index that measures the movement of both the price and the
returns of an index, for example, the movement in a share price and
the dividends paid. An accumulation index assumes all returns are
reinvested and compounded.
Where the fund manager buys and sells investments to try to get a better return for their investors than the
market as a whole.
An investment management approach where a fund manager buys and
sells investments regularly in an effort to outperform a specific
market index, such as the ASX200.
A scam where you are persuaded to pay fees
to a scammer and promised huge rewards in return. Also known as a
‘Nigerian scam’. Similar to a money transfer
Money deposited into a super fund after you have paid any tax on
it. Different from pre-tax contributions (salary
sacrificing), which are contributions made before income
tax or where a tax deduction is claimed.
A regular, fortnightly payment from the government when you
reach pension age. You must meet certain criteria to get the
pension. This is a safety net.
Car insurance policies are based on either 'agreed' or 'market'
value. An agreed value policy has a set dollar value for your
vehicle. Market value policies value your car based on the make,
model and condition. The agreed value is usually higher than the
An investment in livestock, farming,
horticultural or forestry projects, usually through a managed
The interest rate charged to the borrower, excluding expenses
such as account opening and account keeping fees. The APR is the
basic cost of your credit as a percentage of the total loan amount.
Please note that even one credit card will have more than one APR –
one for purchases, one for cash advances and one that is charged if
you make late payments. A rate that includes all fees is known as a
An investment, purchased with a lump sum that guarantees to pay
a set income for either an agreed number of years, or for life.
Generally, your money is locked away for a fixed period or for
life, though some annuities allow early withdrawals or for a
'residual capital value'. There is no capital left at the end
of the specified period. The income payments may be indexed each
year, often in line with inflation. Some annuities allow for
Something you own. It may be a financial item like money, bonds, shares or a bank account or
physical item like a house, land or a car.
The way in which your investment is divided
across different assets like shares, property, fixed
interest or cash.
A category of investments with similar characteristics and
market behaviours. Examples include cash, fixed interest, property
A person or company that manages an investment on behalf of
Money that can be withdrawn from an account whenever
A machine found in public places and outside banks used to
withdraw cash from your accounts 24 hours a day.
A card that provides access to your own money via ATM and EFTPOS facilities. See also debit card.
A licence given by ASIC that allows people or companies to
legally carry on a financial services business, including selling,
advising or dealing in financial products. You should only deal
with licensed businesses as you are better protected if things go
wrong and you will have access to free dispute resolution services.
A licence does not mean that ASIC endorses the company, financial
product or advice or that you cannot incur a loss from the
investment. ASIC grants a licence if a business shows it can meet
basic standards such as training, compliance, insurance and dispute
resolution. The business is responsible for maintaining these
standards. The ASIC Connect Professional Registers will tell
you if the company or person holds an AFS licence.
Refers to the Financial Claims Scheme (FCS) which provides
protection to depositors of up to $250,000 per account-holder per
authorised deposit-taking institution (ADI) (bank, building society
or credit union) in the event of the ADI failing.
The prudential regulator of the Australian financial services
industry. It oversees banks, credit unions, building societies,
general insurance and reinsurance companies, life insurance
companies, friendly societies, and most of the superannuation
industry. APRA is responsible for ensuring Australia has a stable,
effiecient and competitive financial system. It also provides
statistics on the Australian financial sector.
The Australian Federal Government agency that enforces laws
relating to companies, securities, financial services and credit,
in order to protect consumers, investors and creditors.
Australia’s biggest exchange, where shares in public companies,
futures, options, warrants, bonds and other securities and
derivatives are traded.
Corporation authorised under the Banking Act 1959. Includes
banks, building societies and credit unions.
An employment standard that sets out minimum wages and
conditions for an industry or occupation. Awards cover things like
rates of pay, overtime, penalty rates and allowances.
Last updated: 18 Nov 2015