Using someone else's personal details in order to steal money or
gain other benefits by pretending to be that person.
Tax credit passed on to shareholders who receive partially or fully franked dividends. The tax credit
is in consideration of the tax the company has paid on its
profits before passing those profits on to shareholders.
Everything you get for your regular monthly payment under a
mobile phone plan - e.g. allowances for calls, data.
Any asset that generates an income. For
example, dividends are paid on shares, investment
properties generate rental income, bonds and bank accounts
Provides you with an income if you can’t work because of illness
or injury. Most policies offer cover for up to 75% of gross wages
for a specified number of years.
A statistical measure of change in the value of a market, asset
class or industry sector. The value of an index increases or
decreases with changes in the value of the underlying security or
sector it's measuring. For example, the ASX All Ordinaries Index
measures the change in the overall value of 500 largest
companies by market capitalisation listed on the Australian
A managed fund with a portfolio constructed to match or track
the return before fees of a particular market index, such as the
ASX 200 or the ASX Small Ordinaries Index.
A superannuation fund that originally
catered to workers from a particular employment industry or
industrial award. Most are now open to the general public. They are
usually low cost, have limited investment options and return
profits to members.
A classification used to group companies that are related
in terms of their primary business activities. Major industry
sectors include consumer discretionary, consumer staples, energy,
financials, healthcare, industrials, information technology, metals
and mining, telecommunications and utilities.
The increase in the cost of goods and services over time.
When a company lists on a stock exchange and offers shares to
the public for purchase. Also known as a float.
The trading of financial products while in possession of
information, or having received information, that is not generally
available to the public. Penalties include heavy fines and
A financial product issued by banks and other financial
institutions that lets investors buy shares (or other securities)
over a period of time, making an initial payment and paying the
balance later. A form of leverage as it involves borrowing to
invest, and investors are charged interest and fees on the
outstanding amount but get the benefits of owning the whole
investment, such as receiving dividends.
An insurance bond is a long term investment offered by insurance
companies and friendly societies where investors' money is pooled
and invested according to the investment option chosen. There are
tax advantages for higher income earners if the investment is held
for at least 10 years and certain conditions are met.
A written legal agreement that sets out what is being insured
and for how much.
Money charged by an insurance company for coverage.
Payment for the use of money over time. You earn interest by
lending your money. If you borrow money, interest is the amount you
pay to borrow the money. The rate of interest can be fixed or variable. It is usually calculated as a
percentage of the amount lent or borrowed. For example on a $10,000
car loan that has an interest rate of 10%, you would pay $1000
interest in the first year.
The relationship between the amount of money borrowed or lent
and the money paid in return for the use of that money. Usually
expressed as a percentage per year.
Allows you to buy goods or services now and pay for them later.
You don't have to pay interest for a set period. You are usually
required to make regular repayments during the interest-free
period. Any money outstanding at the end of the interest-free
period will incur interest, often at a very high rate.
The days where you don’t have to pay interest on your credit
card purchases. Interest-free periods usually start on the first
day of your billing cycle, not when you make a purchase.
Where only the interest is paid on a loan for a
specified period. No principal repayments are required during
A special deal that gives you better value when you use your
mobile phone overseas.
A fee that may be charged by credit card providers for
purchases, cash advances or transactions that are
made with overseas-based merchants or financial institutions, or
with Australian-based merchants who process payments overseas.
This fee may still be charged even if the transaction is in
Dying without leaving a will. Your assets will be distributed according to
intestacy laws in the relevant state or territory.
An asset bought with the aim of producing an
income and/or an increase in value over time.
A long term investment offered by insurance companies and
friendly societies where investors' money is pooled and invested
according to the investment option chosen. There are tax advantages
for higher income earners if the investment is held for at least 10
years and certain conditions are met.
Making a conscious decision about how your money will be
The choice investors have about how their money is invested in
any form of pooled investment fund where a fund manager makes
investment decisions on the investor's behalf. Investment options
include single-sector options such as cash, bonds, property and
shares, or multi-sector options such as conservative, balanced,
growth or high growth. Each investment option offered has its own
investment strategy, return benchmark and risks.
An administrative system for your investments. Platforms offer a
range of investments and services, all in the one place. Reporting
for all investments is usually in the one report.
A legal entity that creates, registers and sells securities in
order to raise money to finance its operations. Issuers include
domestic or foreign governments, companies and investment
Last updated: 29 Jul 2015