Glossary of Financial Planning Terms
Disclaimer: The information contained in this glossary terms is of a general nature only and must not be relied upon in any circumstances. Legal advice should be sought before signing any binding documents to ensure that the wording/terminology is fully understood and explained.
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Z
A
Abridged Claim
Centrelink
A claim from a customer who was previously receiving the same payment type within a certain period in the past. This type of claim can result in shorter processes, as previously assessed information is not normally revisited if the customer's circumstances are unchanged.
Abstudy
Centrelink
A payment to eligible Indigenous secondary and tertiary students and full-time Australian Apprentices (who can be apprentices or trainees).
ABSTUDY Activity Agreement
Centrelink
(ABAA). A written agreement between a secondary school student receiving ABSTUDY and Centrelink. It outlines the activities the student will undertake to meet the requirements of their Activity Test. These agreements apply to students who have had unapproved absences of more than five days in a term.
Abstudy Awards
Centrelink
Allowances and benefits available to particular groups of students or Australian Apprentices under ABSTUDY provisions.
Abstudy Simplified Claiming Tool
Centrelink
An over-the-phone staff assisted claiming option for ABSTUDY customers via the Centrelink Call Centre.
Acceptance
Property
Consent by the person receiving the offer to be bound by the terms and conditions of the person making the offer. Acceptance of an offer constitutes an agreement.
Access Points
Centrelink
A network of over 200 self-help facilities located in rural and remote communities where customers can access Centrelink publications and forms, have their Proof of Identity documents copied and have free use of phone, fax and photocopier for Centrelink related business.
Accessory
Property
A second building on a lot and one that is not considered to be the primary building, e.g. a storage shed or a parking space. Usually described as 'Accessory Building' or 'Accessory Unit'.
Act of God
Insurance
Any act of nature such as rain, lightning, floods or earthquakes. Many insurance policies do not cover losses resulting from an 'Act of God'.
Action To Obtain Child Support
Centrelink
To maximise the amount of Family Tax Benefit Part A paid, a parent or guardian must show they have taken reasonable steps to arrange child support payments from the child's other parent.
Active Management
Investment
A style of investment management that seeks to attain returns above a set benchmark by constantly monitoring and, if necessary, changing asset allocation and security selection.
Actively Seeking Work
Centrelink
Looking for, and being willing and available to undertake paid work. For example, applying for jobs or attending job interviews.
Activity Agreement
Centrelink
A formal document signed prior to 30 June 2009 negotiated by either Centrelink or an Employment Services Provider and a job seeker that contains all the activities, both compulsory and voluntary, that a person has agreed to undertake.
Activity Test
Centrelink
Refers to the activities Centrelink customers must complete to receive certain Centrelink payments. People with the capacity to work and who are of working age, need to find work or take part as fully as possible in the community.
Activity Test Exemption Period
Centrelink
Certain special and verifiable circumstances in which a customer is not obligated to actively look for work and still remain eligible for an income support payment.
Actual Assessment Method
Centrelink
The calculation of Family Tax Benefit, taking into account variable child support payments that a family receives.
Additional Boarding Allowance
Centrelink
(ABA) The additional component of Assistance for Isolated Children (AIC) Boarding Allowance, which is means-tested on parental income.
Adjusted Fringe Benefits
Centrelink
Fringe benefits are benefits that an employee receives from their employer. The benefit may be assigned to someone else. The value of these fringe benefits is included as adjusted fringe benefits regardless of whether they were received in Australia or elsewhere.
Adjusted Taxable Income
Centrelink
(ATI) For the purposes of family assistance, an individual's ATI for the tax year is the sum of the following amounts for that year: taxable income the value of any adjusted fringe benefits, reportable superannuation contributions, target foreign income (e.g. foreign income and tax exempt foreign employment income), total net investment losses, and tax free pension or benefit less 100% of the individual's child maintenance expenditure.
Administrative Appeals Tribunal
Centrelink
(AAT) An independent tribunal to resolve disputes between people and government agencies. It can review decisions of the Social Security Appeals Tribunal.
Administrative Error
Centrelink
An error in calculating the correct entitlement, made by Centrelink. This error has in no way been caused or contributed to by the claimant/customer.
Administrator
Estate
The person (or statutory trustee company or Public Trustee) appointed by the court to administer the estate of an intestate person, or the estate of a person who does not appoint an executor or where the executor is unwilling or unable to act.
Adult Migrant English Program
Centrelink
(AMEP) Teaches English as a second language to help migrants and humanitarian entrants to successfully settle in Australia.
Adult Wage
Centrelink
Legal minimum wage that must be paid to all workers over 21 years of age in a certain industry.
Advance Payment
Centrelink
A prepayment of a person's income support payment, pension or Family Tax Benefit entitlement, which is subsequently repaid by deductions from fortnightly payments. There are rules that apply to granting the Advance Payment and the amount that can be advanced.
Affirm
Centrelink
A decision to keep the original decision (usually in a review or appeal situation). That is, to follow the original decision. Opposite of 'set aside'.
Age Pension
Centrelink
A payment to help people of age pension age who do not have enough income to support themselves in retirement. Claimants must be Australian residents (unless living in a country with which Australia has an international social security agreement) and generally must have lived in Australia for 10 years (unless claiming under the terms of an international social security agreement). Payment is subject to income and assets tests.
Aged Care Home
Centrelink
A nursing home or hostel that provides residential care.
Allocated Pension Or Annuity
Investment
An amount paid regularly from an investment account in which the level of annual income payments falls within a range determined by government regulations. Payments are made until all capital is withdrawn or you die (in which case the balance of the investment is available to your estate or to the person nominated as your reversionary pensioner (spouse) who may continue to receive a pension until account balance falls to zero (usually around age 80 to 85 as a guide).
Allowable Deductions
Centrelink
Expenses allowed as a deduction from business income for the purposes of calculating a person's entitlement to a Centrelink payment.
Allowee Couple
Centrelink
When couples ae both receiving a Centrelink allowance.
Alternative Proof of Identity
Centrelink
(POI) Proof of Identity (POI) documents other than primary documents such as Proof of Birth, Proof of Arrival or Australian Citizenship. Some customers have trouble providing POI documents. In these cases Customer Service Advisers may use alternative POI and, if appropriate, help customers to get additional POI documents.
Amortise
Loans
To repay a mortgage with regular payments that cover both principal and interest.
Annual Leave
Centrelink
A yearly entitlement to paid recreation leave, usually between two and four weeks. This may affect some Centrelink payments.
Annual Report
Shares
A yearly report or statement of a company's financial health. It generally includes a balance sheet and profit and loss statement. Trustees of funds must also issue annual reports.
Annuity
Centrelink
Regular or periodic payments made under arrangement, usually with a life insurance company, and may be for a fixed period or for a person's lifetime. Annuities can also be received under the terms of a will.
Annuity
Investment
Regular income paid to you by an insurance company in exchange for a lump sum. The income stream received is a combination of return of capital and of investment earnings. Annuities now can be fixed term and may be taken out by people of any age. However, there are special advantages for Age Pension applicants in taking out an annuity for either lifetime or since 20 September 1998 "life expectancy annuities" (LEAs) are available for periods between 5 and 15 years or more and depending on age, can be exempt from the Assets Test, provided they are taken out after or on reaching Age Pension age.
Annul
Centrelink
To cancel. For example, if a decision is annulled it is cancelled and usually a new decision is made in its place. Once something is 'annulled', it is treated as if it were never made.
Anticipated Payment
Centrelink
An advance of up to seven days of a person's accrued entitlement, which may be paid when they are in severe financial hardship through exceptional and unforeseen circumstances.
Anticipated Pension
Centrelink
A type of Italian benefit and a technical term contained in the international social security agreement between Australia and Italy.
Appeal
Centrelink
If a person is not happy with a decision made by Centrelink, he or she can ask to have the decision reviewed.
Appreciation
Property
An increase in the value of a property due to changes in market conditions or supply and demand, etc.
Apprenticeship
Centrelink
A scheme combining practical work with structured training to give young people experience and a nationally recognised qualification.
Approved Activity
Centrelink
Jobseekers with a participation requirement are required to actively look for work or participate in suitable training or other activities, that will assist them in returning to employment. These activities are known as 'approved activities'.
Approved Care
Centrelink
Childcare services that have been 'approved' by the Commonwealth Government. Families can claim reduced childcare fees if they use 'approved services'.
Approved Course of Study
Centrelink
Study that is an approved activity for unemployed people. It is usually full-time and less than six months.
Approved Deposit Fund
Centrelink
A fund set up for the investment of superannuation and certain other termination payments to allow them to be saved for use at a later date (usually on retirement).
Approved Deposit Fund
Investment
A superannuation entity (fund) that can accept Eligible Termination Payments.
Architrave
Property
A decorative moulding around doors or windows.
Arrears Payment
Centrelink
A back-payment, i.e. payment for a period in the past.
Assessable Income
Centrelink
Amount of income to be taken into account when determining a rate of pension or benefit. Usually gross income, but deductions are allowed in some circumstances. Reportable superannuation contributions (which include amounts voluntarily salary sacrificed to superannuation) and net losses from investment are assessable income for Centrelink purposes.
Assessable Period
Centrelink
Any period during which the person received a Centrelink payment.
Assessed Value
Property
The valuation placed on a property for the purposes of taxation by an authority.
Assessment Period
Centrelink
The period for assessing a family's shared care, which usually begins on 1 July and ends on 30 June, or earlier if the shared care ends before 30 June.
Assessment Subsidy For Overseas Trained Professionals
Centrelink
(ASDOT) A subsidy that may help with fees involved in having a non-Australian qualification assessed. ASDOT is available to selected professional categories only.
Asset
Investment
Item of monetary value, such as cash, investments or property.
Asset Allocation
Financial Planning
The percentage of assets held in each asset class (shares, fixed interest, etc.) in an investment portfolio.
Asset Class
Financial Planning
A category of financial assets. The major asset classes are shares, property, fixed interest and cash, which in turn can be broken down further to include domestic or international shares, domestic or international fixed interest, direct or indirect property etc.
Assets
Centrelink
Any goods, money, real estate, personal property, interest in any property, any debt owing to the person and any other right or interest, including a right to income. In short, any valuable possession, in Australia or elsewhere.
Assets Disqualifying Limit
Centrelink
If the assets owned are above the dollar limit, a person or couple will be disqualified from receiving a Centrelink payment.
Assets Hardship
Centrelink
Special provisions are in place for those customers in severe financial hardship due to the application of the assets test. The assets hardship rules allow for the value of particular assets to be disregarded and for the rate of pension, allowance or benefit payable to be determined in a special manner.
Assets Test
Centrelink
A method of calculating a rate of payment or entitlement to a pension using the value of a person's assessable assets.
Assignment
Loans
The transfer of a mortgage from one person to another.
Assistance For Isolated Children Scheme
Centrelink
AIC. Helps the families of primary, secondary and certain tertiary students who do not have reasonable daily access to a suitable state school, primarily because of geographic isolation. Most AIC allowances are not means tested.
Association of Superannuation Funds of Australia
Organisations
(ASFA). The peak industry body responsible for protecting, promoting and advancing the interests of Australia's superannuation funds, their trustees and members.
Assumed Benefit
Centrelink
A benefit not actually being paid to a customer, but considered as being paid by an international social security agreement partner
Assurance of Support Debt
Centrelink
An amount of benefit or allowance received by an assuree during the Assurance of Support period, which the assurer must repay to the Commonwealth.
Assurance of Support Period
Centrelink
The period of two or 10 years, commencing from the assuree's date of arrival in Australia, or the date permanent residence is granted, whichever is later.
Assurance of Support Scheme
Centrelink
Provides a means for migrants who do not meet the conditions for independent admission to Australia. Allows migrants to enter under the assurance that an Australian resident or organisation will support them for a defined period.
Assuree
Centrelink
A new migrant for whom the Assurance of Support has been provided.
Assurer
Centrelink
An individual, or an organisation, that has undertaken to support a new migrant (an assuree) under the Assurance of Support Scheme.
Asx 300 Accumulation Index
Shares
An index of the top 300 companies, by market capitalisation, listed on the Australian Stock Exchange. This index takes into account share price movements and dividends. Many Australian share fund managers use this index as their benchmark.
Asx 300 Index
Shares
The top 300 companies, by market capitalisation, listed on the Australian Stock Exchange. The index is commonly used as a benchmark for the performance of Australian shares overall.
Attestation
Estate
The statement made at the end of a will that it has been duly attested.
Attorney
Estate
A person appointed by a document called a power of attorney who is empowered to represent that person. In some States there are powers of attorney called enduring powers of attorney, which empower the attorney to act on behalf of the person in the event of his or her incapacity.
Auction
Property
A public sale of a property or real estate that is sold to the highest bidder.
Auslan
Centrelink
Is the sign language of the Australian deaf community.
Australian Apprenticeships Access Program (Access Program)
Centrelink
Helping disadvantaged jobseekers to successfully participate in an apprenticeship or traineeship.
Australian Banking Industry Ombudsman
Organisations
(ABIO). The avenue through which a customer can make a complaint about their bank and have it dealt with independently.
Australian Business Number
Centrelink
(ABN) An identifying number businesses/employers obtain from the taxation office.
Australian Disability Enterprises
Centrelink
These services employ and support people with illness, injuries or disabilities, often in specialist working environments. Provided by Australian Disability Enterprises previously known as Business Services. Australian residence qualifications apply.
Australian Education International?national Office of Overseas Skills Recognition
Centrelink
AEI-NOOSR. Coordinate, assess and facilitate the recognition of overseas gained qualifications and skills for permanent residents of Australia. AEI-NOOSR assess higher education, post-secondary and technical and vocational qualifications.
Australian Financial Services Licence
Organisations
(AFSL). A licence allowing an organisation to provide financial services in Australia. Licensees' activities and service standards are managed by the Australian Securities and Investments Commission (ASIC).
Australian Prudential Regulation Authority
Organisations
(APRA). A Government agency responsible for prudential regulation of banks, insurance companies, superannuation funds, credit unions, building societies and friendly societies.
Australian Resident
Centrelink
A person who resides in Australia and is either, an Australian citizen, the holder of a permanent visa, or the holder of a special category visa who is a protected SCV holder (i.e. in Australia on 26 February 2001 or for 12 months in the two years prior to that date, or assessed as 'protected' before 26 January 2004).
Australian Securities and Investments Commission
Organisations
(ASIC). The Australian Government regulating body that enforces and regulates company and financial services laws to protect consumers, investors and creditors.
Australian Stock Exchange
Organisations
(ASX). The main Australian market place for trading equities (shares) and related securities.
Australian Taxation Office
Organisations
(ATO). The ATO is the Government's principal revenue collection agency, and is part of the Treasurer's portfolio. ATO's role is to manage and shape tax, excise and superannuation systems that fund services for Australians.
Austudy Payment
Centrelink
A payment for students aged 25 or over doing an approved full time course at an approved institution.
Authorised Representative
Financial Planning
A person authorised by an Australian Financial Services licensee to provide financial products and/or financial advice, ie. a financial adviser.
Authorised Review Officer
Centrelink
(ARO) A senior and experienced officer whose main function is to review decisions made under social security law and family assistance law, as well as several other pieces of legislation administered by Centrelink.
Automatic Uplift
Centrelink
A process whereby income estimates for Family Tax Benefit and Child Care Benefit customers are automatically updated if they have not provided an estimate for the relevant financial year of their own. The Automatic Uplift can occur as a result of the new financial year assessment process or the receipt of actual Adjusted Taxable Income from the Australian Taxation Office.
Averaging Earnings
Centrelink
A provision that allows customers over age pension age to advise wages earned over a previous period of agreed duration (2-12 weeks) and then use this average rate of income over the next period of the same duration.
Award
Centrelink
A set of rights that a worker has to certain wages and conditions in return for doing a certain job. The award is mutually agreed to by an employer and the worker's union or set by the Australian Industrial Relations Commission.
Away From Base Assistance
Centrelink
ABSTUDY assistance that covers students' fares and accommodation costs. It enables tertiary and some secondary level students to participate in residential schools, testing and assessment programs for entry into a tertiary course, field trips and/or placements, which are necessary to complete the course.
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B
Baby Bonus
Centrelink
A payment made to customers for a new baby or adopted child up to the age of 16. Customers must claim within 52 weeks of the birth of their child or in the case of adoption, 52 weeks from the date the child entered their care.
Balloon Payment
Loans
A large loan payment to clear a debt.
Bank Accounts Debit Tax
Taxation
(BAD). State or Territory government tax (except ACT) on withdrawals from accounts on which a cheque can be drawn.
Bank Guarantee
Centrelink
An amount paid by the assurer, which can be used by Centrelink to recover an Assurance of Support debt. This money is deposited for a fixed term with the Commonwealth Bank and can be retrieved at the end of the Assurance of Support period, if there is no Assurance of Support debt.
Bankruptcy
Legal
The legal process in which the assets and liabilities of a person deeply in debt are placed with a receiver. The receiver takes control of their finances and helps them clear their outstanding debts. The process may restrict the person's financial dealings in the future.
Basic Rate of Payment
Centrelink
The minimum amount payable per fortnight, not including additional payments such as Rent Assistance.
Bear Market
Shares
Represents a consensus by economists and market watchers that the stock market has suffered a downtrend and could continue to suffer a downtrend at least for the foreseeable future.
Benchmark
Financial Planning
A measure used for comparison of investment returns over a period of time.
Beneficiaries
Estate
The people who receive the assets under a will.
Beneficiary
Centrelink
A person who is entitled to income, assets or both, from either a trust or a deceased estate.
Beneficiary
Taxation
The person designated to receive the income from a trust, estate, or a deed of trust.
Bequest
Estate
A gift of personal property under the terms of a legal will.
Bereavement Allowance
Centrelink
This allowance provides short-term assistance (usually up to 14 weeks) for both male and female persons, without children, in the period immediately following the death of their partner.
Blended Family
Centrelink
A family where there are at least two Family Tax Benefit (FTB) children and one FTB child is from a previous relationship of one member of the couple and another FTB child is from the current relationship or a previous relationship of the other member of the couple.
Blue Chip
Shares
Stock/shares of leading, quality companies (usually highly valued) that are well known for their strong financial position and ability to make profits.
Board
Centrelink
Payment for meals only.
Board And Lodging
Centrelink
Payment for accommodation and meals.
Board And Lodging In Return For Services
Centrelink
Receive accommodation and meals without payment but in return for doing some work or duties.
Boarder
Centrelink
Person who lives in someone else's house and pays for meals and accommodation (lodging).
Body Corporate
Property
An administrative body made up of all the owners within a group of units or apartments of a strata building. The owners elect a committee which handles administration and upkeep of the site.
Bond
Property
A sum of money paid by a tenant and held by the Rental Bond Board to ensure against defaulting on payment and damage to the property.
Bonds
Investment
Fixed interest investments, usually for the medium to longer term. They are issued by governments, companies or other entities (the borrowers) who pay the investor interest throughout the life of the bond. The level of security varies with the quality of the offering institution.
Bottom-Up Style
Shares
A method of analysing companies whereby an investor starts by looking at stock-specific fundamentals and then incorporates industry trends and macro-economic analysis. This style is the opposite of 'top down'.
Boundary
Property
The lines that define the perimeter of a property.
Bridging Loan
Loans
A short term loan (usually at a higher rate) taken out to cover the financial gap between buying a new property and selling an existing property.
Broker
Shares
Refers to an agent who handles the orders of investors to purchase and sell securities, commodities, insurance policies or other property. The provision of this service attracts a brokerage.
Brokerage
Shares
Fee paid to a stockbroker for providing the service of buying or selling shares. Fees are charged according to a scale which takes account of the total value of shares traded. The fee may vary from one broker to another and is included in the purchase price (or deducted from the sale price) i.e. it is not paid separately.
Budget
Financial Planning
A plan for spending and saving money based on an individual's goals over a certain period of time.
Bulk Billing
Centrelink
A system where doctors send their bills directly to Medicare.
Bull Market
Shares
Is the reverse of a bear market; i.e. investors expect a prolonged upturn in the stock market.
Business Day
Legal
A standard day for conducting business. Excludes weekends and public holidays.
Buy/sell Spread
Investment
The difference between the entry and exit prices (fees) of a fund.
Buyer's Market
Property
When the demand for property is less than supply so the advantages shift to the buyer. Contrast with Seller's Market.
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C
Capacity For Work
Centrelink
A person's ability to work which may be reduced by an illness, injury or disability.
Capacity To Earn Income
Centrelink
A person's overall capability (i.e. health, intellect, experience) to perform productive activities either as a self-employed person or in someone else's employment.
Cape York Welfare Reform Trial
Centrelink
(CYWRT) There are four Cape York communities that are currently participating in the CYWRT, they are Aurukun, Hope Vale, Coen and Mossman Gorge including their outstations.
Capital
Investment
Money used for investment purposes to create income and/or growth.
Capital Expenditure
Property
The cost of an improvement made to extend the useful life of a property or to add to its value.
Capital Gain
Centrelink
Accumulated profit received as a single payment on the sale or realisation of an investment or property.
Capital Gain
Investment
The difference between the purchase price and the selling price of an investment.
Capital Gains Tax
Taxation
(CGT). Levied on the capital profit made on the sale of assets acquired after 20 September, 1985. It is only levied when an asset is disposed of and cost value is adjusted for inflation. The family home is generally exempt. The rate of tax payable depends on your marginal tax rate in the year of sale (i.e. financial year to 30 June). After 1/10/99 only 50% of gain taxed if the asset is held for longer than twelve months, and there is no inflation allowance as with previous method until that date.
Capital Growth
Investment
The increase in the market value of an asset.
Capital Guaranteed Fund
Investment
A fund in which the original capital and usually the declared investment "bonuses" are guaranteed by the fund manager.
Capital Improvement
Property
Any structure or addition to a property erected as a permanent improvement that adds to its value and useful life.
Capital Stable Fund
Investment
A fund which usually carries a little more risk than a Capital Guaranteed Fund because it includes not only low risk fixed interest investments but also investments in low risk equities (shares). However there have been times when the value of "capital stable" investments dropped in value.
Capital Transfers (Lump Sums)
Centrelink
The transfer of an asset such as a new car, or any payment of a lump sum (as separate from regular payments of cash maintenance).
Capitalised Maintenance?lump Sum Agreements
Centrelink
A lump sum payment or transfer/settlement of property specifically for child support, where the value exceeds $1500 (such as a car or house or cash payment of a lump sum).
Car Fringe Benefits
Centrelink
A fringe benefit where the person is provided with a car by the person's employer or an associate of the employer, for private rather than work related purposes. The value of the car affects the Family Tax Benefit income test and parental means test under the Social Security Act 1991.
Care And Attention
Centrelink
For Carer Allowance, care and attention refers to the requirement that the carer provides additional care and attention to a person because of their disability, severe medical condition or frail age. The care must be provided on a daily basis.
Care Receiver
Centrelink
For Carer Payment and Carer Allowance, this is the person who receives care from a carer because of their disability or medical condition.
Career Information Centres
Centrelink
(CIC) A service that provides career information and support to students, the unemployed or people who are looking at their career options.
Carer Allowance
Centrelink
A supplementary payment for people who provide daily care and attention for an adult or child with a physical, intellectual or psychiatric disability or someone who is frail aged. It may be paid in addition to other payments.
Carer Payment
Centrelink
An income support payment for people who, because of the demands of their caring role, are unable to support themselves through substantial workforce.
Carer Supplement
Centrelink
The Carer Supplement is an ongoing, non-indexed annual lump sum payment to eligible carers.
Cash Child Support
Centrelink
Child support paid regularly as money or the equivalent of a payment of money, for example a cheque, money order or electronic funds transfer.
Cash Flow
Financial Planning
A measure of the money a person or business receives and spends. Positive cash flow means more money is coming in than is leaving it. Negative cash flow is the converse.
Cash Management
Financial Planning
How a person or business manages money (cash) coming in and going out.
Cash Management Trust
Centrelink
Money can be invested in this product with banks, building societies and special cash investment trusts. The manager of the trust invests in the short-term money market and other securities.
Cash Management Trusts
Investment
Unit trusts that allow investors to pool their money in order to take advantage of investment opportunities in the short term money market. They provide ready access to investors' funds and are therefore ideal for meeting short term cash requirements and unforeseen expenses. Security of the investments is high since they include securities offered by government or banks but not shares or property. They do not provide any growth on the capital invested.
Casual Earnings
Centrelink
Income from casual or irregular work. This income can be paid to a worker regularly, casually or part-time.
Casual Employee
Centrelink
Someone employed on a casual and temporary basis. A casual employee might be employed full-time for a well-defined (limited) time or part-time, but not on a permanent basis.
Casual Work
Centrelink
Work that is not permanent; may be full-time for a defined (but limited) period or part-time. For example, odd jobs.
Caveat
Property
A warning on a title to a purchaser that a third party might have some interest or right in the property.
Caveat Emptor
Legal
A Latin phrase for "Let the buyer beware", i.e. the onus is on the buyer to be satisfied with any item before purchasing.
Centrelink
Centrelink
A government agency delivering a range of Commonwealth services to the Australian community. Centrelink is set up so people can get more of the help they need in one place.
Centrelink Agents
Centrelink
Centrelink has a network of more than 370 Agents located in rural and remote communities where customers can lodge their forms, receive information and have free use of a phone, fax/copier and internet enabled computer for Centrelink related business. Agents are not Centrelink staff.
Centrelink International Services
Centrelink
Handles the day-to-day details of social security payments to customers living outside Australia and customers living in Australia claiming or being paid foreign benefits. Can provide information and advice on international social security agreements and whether payments can be paid outside Australia. Responsible for correct administration of parts of social security law relating to portability, residence, foreign pensions etc.
Centrelink Multilingual Call
Centrelink
A Centrelink call centre service providing information and help in languages other than English by Centrelink staff. This is not an interpreter service.
Centrepay
Centrelink
A voluntary direct deduction facility that customers can use to pay bills such as rent, electricity, gas, water etc, with companies who have adopted the service.
Certificate of Citizenship
Centrelink
An official document provided to a person after they have taken the citizenship of a country other than the country of their birth.
Certificate of Occupancy
Property
A document issued by a local government to a developer permitting the structure to be occupied. This generally indicates that the building is in compliance with public health and building codes.
Certificate of Title
Property
A description of a property with the name of the registered owner, encumbrances, i.e. mortgages or easements on the property. It must be produced by the vendor before the sale of the property.
Certified Copy
Centrelink
A copy of a document certified by an official as being a true and complete copy of the original document.
Change of Circumstances
Centrelink
A legal requirement for people to notify Centrelink within a specified time of changes that affect their entitlement.
Chattels
Property
Movable items of personal property such as furniture that may be included in a sale.
Child Care Benefit
Centrelink
Assistance with the cost of child care for an approved and/or registered care. It is designed to help parents, foster parents and grandparents balance their work and/or family commitments.
Child Care Provider
Centrelink
Includes long day care centres, occasional day care centres, or family day care schemes, where children are supervised and cared for by adults other than their own parents or guardians. Generally the parents of the children pay the child care service provider for the service.
Child Care Rebate
Centrelink
In addition to Child Care Benefit, customers may be able to claim a Child Care Rebate, which will cover a percentage of out-of-pocket child care expenses for approved care.
Child Disability Assistance Payment
Centrelink
An annual payment made to carers of children who are receiving Carer Allowance.
Child Support
Centrelink
Money paid to a parent or carer for the support of dependent children, by the children's other parent/s.
Child Support Agency
Centrelink
An agency that assesses and/or collects child support payments from the non-custodial parent for payment to the other parent/s or carer.
Child Support Assessment
Centrelink
An amount of child support calculated by the Child Support Agency under the administrative formula, which a non-custodial parent is legally obliged to pay.
Child Support Formula
Centrelink
A formula set out in legislation under the Child Support Scheme, which sets the level of child support that needs to be paid.
Child Support Scheme
Centrelink
The scheme aims to improve financial support for children of separated parents, in accordance with their capacity to pay.
Citizenship Test
Centrelink
Most people applying for Australian citizenship will need to sit and pass the citizenship test before they lodge their citizenship application.
Claimant
Centrelink
The person who is lodging a claim.
Clear Title
Property
A title that is free of lien or legal questions as to ownership of the property.
Codicil
Estate
A document used to make a change to the will.
Commission (Investments)
Investment
Money paid by an organisation to a financial planner for placing investments with that particular organisation. The commission is paid out of fees deducted from your investment.
Commission (Property)
Property
A proportion (usually a percentage) of the sale price of a property paid to a real estate agent for negotiating a real estate transaction.
Commission Payments
Centrelink
Payments received by a sales person according to the amount of sales generated. This may replace a salary or may supplement a (low) regular wage.
Common Law
Legal
An unwritten body of law based on general custom in England and used to an extent in Australia.
Common Law Title
Property
See Old System Title.
Common Property
Property
Areas of a building, land or amenities within a strata title property that are shared by all owners, e.g. a driveway.
Commonwealth Ombudsman
Centrelink
An independent person who investigates complaints about an action relating to administration matters, taken by a Commonwealth Government official or a Commonwealth agency.
Commonwealth Pharmaceutical Benefit Scheme
Centrelink
A Commonwealth funded scheme, which subsidises the cost of many prescriptions purchased from pharmacies and public hospitals.
Commonwealth Seniors Health Card
Centrelink
This card gives non-pensioners of age pension age, whose income is below the pension cut-off points, access to low cost prescription medicines and Telephone Allowance.
Community Development Employment Project
Centrelink
(CDEP) The Community Development Employment Project is a community based employment initiative run by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), and the Torres Strait Regional Authority (TSRA), to enable Aboriginal and Torres Strait Islander communities and organisations to take control of their own communities' economic and social development, and to provide employment for people in their communities.
Community Work
Centrelink
Voluntary work undertaken through a Community Work Coordinator prior to 31 December 2009.
Commutation
Superannuation
The action of changing from one kind of superannuation payment to another; e.g. surrendering pension or annuity payments to receive a lump sum payment instead, i.e. cashing in at "today's value" a future income stream.
Company Title
Property
See Stratum Title.
Comparable Foreign Payment
Centrelink
An amount of foreign income payable to a person from a source outside Australia. The person who is entitled to receive the foreign payment can be asked to take reasonable action to obtain the payment.
Compensation
Centrelink
A payment made under an insurance or compensation scheme, or a payment of damages, made wholly or partly in respect of lost earnings or lost capacity to earn.
Compensation Debt
Centrelink
A debt owing to the government representing short-term income support payments received by a Centrelink customer (and their partner) during a periodic payment period or lump sum preclusion period.
Compensation Payments
Centrelink
For social security purposes, these are payments to a person, which partially or wholly compensate the person for loss of earnings or earning capacity.
Compensation Preclusion Period
Centrelink
When a person receives a lump sum compensation payment, Centrelink calculates a preclusion period during which the person is deemed to have been compensated for lost earnings or lost earning capacity. During the preclusion period the person (and their partner) cannot be paid certain Centrelink income support payments.
Compensation Settlement Date
Centrelink
The date on which a compensation payment becomes payable.
Complaint
Centrelink
A person's expression of dissatisfaction with a product or service provided by Centrelink.
Compliance
Centrelink
Systems and procedures to identify and investigate incorrect payments and fraud.
Compliance Activity
Centrelink
An activity a job seeker can undertake to avert or end a serious failure penalty early. This is referred to as a serious failure requirement in the Social Security (Administration) Act 1999.
Compliance Penalty
Centrelink
Financial penalty as a result of a job seeker's non-compliance with an Activity Test or participation requirement where a reconnection or No Show, No Pay failure has been applied. It can also be the result of the application of a serious failure for persistent non-compliance. For example, a job seeker not fulfilling their Employment Pathway Plan compulsory activity or participation requirement or not attending a reconnection appointment. The penalty may be a non-payment period for eight weeks or a failure penalty amount. The definition of a debt related penalty is not covered by this definition.
Compliment
Centrelink
Normally a spoken expression of praise or admiration. Compliments may also be made in the way of a gift or favour.
Complying Pension Or Annuity
Investment
A series of payments received over the remaining lifetime of a pensioner. The pension may be paid by a superannuation fund or life insurance company. The pension must meet a number of legislated requirements.
Complying Superannuation Fund
Investment
A regulated superannuation fund that has not been given a notice from Australian Prudential Regulation Authority (APRA) that it is non- complying.
Compound Interest
Investment
Interest which is allowed to remain with the investment capital and thereby becomes merged or compounded with the principal. It is a very effective way of growing an investment since the amount working for the investor grows at a faster and faster rate.
Comprehensive Compliance Assessment
Centrelink
An assessment undertaken by Centrelink specialists to uncover the reasons for non-compliance. This is aimed at informing a determination on a serious failure for persistent non-compliance and/or to enable and support the development and implementation of suitable early intervention strategies.
Confidential
Centrelink
All information given to Centrelink that is used to assess a person's correct entitlement cannot be given to anybody else unless the disclosure complies with the confidentiality and privacy legislation.
Connection Failure
Centrelink
A failure applied following a job seeker's non-attendance at a Centrelink or provider appointment, or other job search requirements. A connection failure does not result in a financial penalty to the job seeker, however they will be required, where applicable, to reconnect with their provider or Centrelink.
Consent Order
Centrelink
An order issued by a court but drawn up with the full agreement of the parties involved.
Constant Care
Centrelink
For Carer Payment, a carer is said to provide constant care if they personally provide care on a daily basis for a 'significant period' each day.
Construction Loan
Insurance
Also called Building Loan. A short-term, interim loan (only paid to registered builders) for financing the cost of construction. The lender makes payments to the builder at periodic intervals as work progresses.
Consumer Price Index
Centrelink
(CPI) Officially calculated indicator of price movements of a standard basket of goods and services in Australia, recalculated every three months.
Consumer Price Index
General
(CPI). A measure of the movement in prices of a specific group of goods and services. It is used in wage and pension determinations by the Commonwealth Government.
Continuous Residence
Centrelink
Residence in Australia that is uninterrupted. A temporary absence from Australia (e.g. a short holiday) does not usually break the continuity of the person's residence.
Contract Note
Property
(Victoria only) An agreement in writing setting out the terms and conditions relating to the sale or purchase of a property.
Contract of Sale
Property
An agreement in writing setting out the terms and conditions relating to the sale or purchase of a property. It is the purchase document signed at auction.
Cooling-off Period
Legal
A period during which a purchaser of a good or service has the opportunity of deciding not to proceed with a transaction. If this occurs then any money paid out for the transaction should be refunded
Correct Entitlement
Centrelink
The correct amount of payment, taking into account all relevant information.
Cost of Living Adjustment
Centrelink
Adjustments made as a result of price movements of a standard basket of goods and services, recalculated every three months.
Court Order Or A Court Registered Agreement
Centrelink
A court order awarding an amount to be paid in child support for a child, or in spousal maintenance for a partner or ex-partner, or both a child and partner/ex-partner.
Covenant Terms
Property
Conditions and restrictions noted on the title. A covenant may affect future plans or resale of the property.
Cover Note
Insurance
A document issued by an insurance company giving temporary insurance until a formal policy is issued.
Credit
Loans
An amount of money lent from one person or entity (such as a financial institution) to another, based on the expectation and/or agreement that the money will be repaid with interest.
Credit History
Loans
A record of an individual's current and repaid debts which are usually used by a lender to assess the risk of a potential borrower.
Credit Rating
Loans
A measure of a person's ability to repay debt or credit.
Crisis Payment
Centrelink
A one-off, non-taxable payment that is designed to help people who are in severe financial hardship.
Curtilage
Centrelink
The area of land used primarily for private or domestic purposes surrounding the home that is exempt from the assets test. This is limited to two hectares (unless qualifying for extended curtilage) and one title.
Custody
Centrelink
Legal right to make decisions about the daily care of a child.
Custody Order
Centrelink
A court order giving legal custody of a child to a person.
Custody, Care of a Child
Centrelink
A person with custody has the legal right to make decisions about a child's daily care.
Customer
Centrelink
Person who is receiving or who has claimed a Centrelink payment or service.
Customer Access Number
Centrelink
(CAN) A unique number given to Centrelink customers to enable access to eServices.
Customer Charter
Centrelink
Centrelink's statement of service to its customers.
Customer Confirmation System
Centrelink
Allows concession providers to confirm Centrelink customer information provided by the customer via secure Internet arrangements.
Customer Record
Centrelink
The total history and circumstances of a person, as a Centrelink customer. The history includes entitlement and eligibility information, as well as the payment history. The information is held electronically, and as a paper file.
Customer Reference Number
Centrelink
(CRN) A unique number given to every Centrelink customer.
Customer Relations Line
Centrelink
A telephone service where Centrelink customers can provide feedback, complaints or compliments.
Customer Relations Unit
Centrelink
This team listens to customer feedback and decides on the most appropriate course of action.
Customer Service Centre
Centrelink
A Centrelink office where claims can be lodged, and enquiries made.
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D
Damages
Centrelink
An amount of money claimed or awarded in compensation for loss or injury.
Data Matching
Centrelink
A process which compares two or more sets of information about individuals and seeks to identify information, which relates to the same individuals.
Date Incapacity Commenced
Centrelink
The date when incapacity for work began.
Date Injury Occurred
Centrelink
Date of the accident; not necessarily date when consequences of the injury first showed up.
Date of Claim
Centrelink
Date on which a claim for a Centrelink payment is taken to be made.
Date of Commencement
Centrelink
Date from which a Centrelink payment is paid.
Date of Expiry of Medical Certificate
Centrelink
End of the period covered by a doctor's medical certificate. For example, if a claimant for Sickness Allowance is still sick and not able to work, they need to get another certificate before the current one expires to continue to receive Sickness Allowance.
Date of Grant
Centrelink
Date on which entitlement to a Centrelink payment was officially established and the correct entitlement calculated.
Date of Lodgement
Centrelink
Date on which a claim form is actually received by Centrelink, or by a Centrelink Agent, or by an international social security agreement partner on behalf of Centrelink.
Day Care
Centrelink
The care for children of working parents during normal working hours, in particular, pre-school age children.
De Facto Relationship
Centrelink
A relationship between two people (opposite-sex or same-sex), who are not legally married or in a registered relationship, but are partnered and living together (or usually live together) as members of a couple.
Death Benefits
Superannuation
Benefits paid by a superannuation fund to a dependent or estate, following the death of a member.
Debenture
Centrelink
A type of medium to long-term fixed-interest investment issued by a corporation or company.
Debenture
Investment
An investment instrument issued by companies which pays a regular and fixed interest amount for the term of the investment. The invested funds (principal) are repaid at the end of the term (maturity).
Debt
Centrelink
A recoverable overpayment. When a customer is paid more than they are entitled to, it becomes a debt to the Commonwealth and may be legally recovered.
Debt
Loans
The amount a person or entity (such as a business) owes to lenders.
Debt Security
Loans
Borrowed funds that must be repaid by the entity issuing the debt security.
Decree Absolute
Centrelink
Final certificate of divorce. It is an irreversible court order of Dissolution of Marriage.
Decree Nisi
Centrelink
Conditional certificate of divorce. It is usually made final (decree absolute) after a period of one month.
Deductible Child Maintenance Expenditure
Centrelink
Where a person pays child support to another person, the full amount paid can be deducted from the payer's family income under the Family Tax Benefit income test.
Deed
Property
A legal document conveying title to a property.
Deemed Contributions
Centrelink
For international social security agreements, periods in which contributions to the other country's social security system have not been paid but which are equated with periods of paid contributions.
Deemed Income
Centrelink
Generally, the income figure arrived at after multiplying the value of an investment by the deemed interest rate.
Deemed Residence
Centrelink
A period when a person is considered to have been a resident of Australia under an international social security agreement by virtue of having made contributions to (or resided in) the relevant country.
Deeming And Deemed Interest Rate
Centrelink
A rate of interest, which is assumed to be earned by the total of a person's 'financial investments', even if the investments are not earning this rate. The actual interest rate may be higher or lower than the deemed interest rate.
Default
Loans
Failure to make mortgage payments regularly or to comply with other requirements of the mortgage.
Deferred Annuity
Centrelink
An annuity where the regular payments have been delayed until a later date, usually until retirement or age 65. Often the payments are never commenced and the profits are received as a lump sum. Used to defer tax liability and preserve termination payments for retirement.
Deferred Annuity
Investment
A type of annuity (retirement income product) that starts payment of income at a later date, such as when an investors turns 65. Deferred annuities can only accept Eligible Termination Payments such as lump sums from superannuation funds.
Defined Benefit Fund
Investment
A fund where the member receives a benefit that is defined by the trust deed of the superannuation fund.
Defined Benefits Fund
Superannuation
A superannuation fund that pays a member of the fund a defined amount of super money (i.e. pension) that is linked to salary level at retirement and length of service (e.g. in the State public service normally 66% of average salary over the last 3 years provided after, say, 30 years of service.)
Department of Child Protection
Centrelink
(DCP) Refers to the Department of Child Protection for that state or territory.
Department of Veterans' Affairs
Centrelink
(DVA) This department cares for people who served in the Army, Navy or the Air Force, and their dependants. The department administers different types of disability and service pensions.
Dependant
Centrelink
A person who relies on another person for financial support.
Dependent
Taxation
The spouse or children of an individual or any other person who is financially dependent on that individual.
Dependent Child
Centrelink
Any child dependent on another person, i.e. not in receipt of (substantial) income in his or her own right. An adult has legal responsibility either alone or jointly with another person for the day-to-day care of the child or in another person's care and is wholly or substantially in the adult's care. Needs to satisfy the definition of an Australian resident.
Deposit (Property)
Property
A percentage of the purchase price given to bind the sale of real estate.
Depreciation
Centrelink
Reduction in value of equipment and vehicles over time through wear and tear.
Depreciation
Property
A decline in the value of property due to changes in market conditions or other causes.
Deprivation of Assets/income
Centrelink
Disposal of assets or income for nil or minimal return, regardless of whether there is intent to avoid the assets/ income tests.
Derivatives
Shares
A financial instrument that derives (hence its name) its value from the price of a physical security or an index.
Devise
Estate
A gift of land in a will. The recipient is called a devisee.
Direct Deduction
Centrelink
Periodic or weekly payments of compensation can affect a person's entitlement to income support payments as a direct deduction, rather than under the ordinary income test. This means that for every dollar of compensation received, entitlement is reduced by a dollar. Can also apply to payments inside Australia made under the terms of an international social security agreement.
Disability Employment Services
Centrelink
Services providing specialised employment assistance for people with disabilities, injuries or ill health.
Disability Pension
Centrelink
Paid by the Department of Veterans' Affairs as compensation for an injury or disease, which has been accepted as war or defence-caused.
Disability Support Pension
Centrelink
Payment to persons 16 years or older where their disability, illness or injury has been assessed as preventing them from working for at least two years. A person assessed as permanently blind may also be eligible for Disability Support Pension.
Disaster Recovery Payment
Centrelink
A one-off payment made by Centrelink, when a person's main home is severely damaged or there is a significant interruption to a person's source of livelihood because of a declared major disaster.
Disbursement
Loans
A cash expenditure for the purpose of settling a debt.
Discretionary Trust
Investment
Allows a trustee (who holds an interest in property for the benefit of another who is known as the beneficiary) complete discretion to distribute capital and income to the beneficiaries specified in the Trust Deed. A non-discretionary trust would restrict the trustee's freedom. Discretionary trusts are used mainly for a family's affairs.
Disposable Income
Financial Planning
Money left over after all expenses have been met.
Distribution
Investment
An income payment made to unit trust investors. Under a trust deed, any income earned by the investments held in the trust may have to be distributed to the investors. The term may also be used to describe a return of capital.
Distribution
Shares
An income payment made to unit trust investors. Under a trust deed, any income earned by the investments held in the trust may have to be distributed to the investors. The term may also be used to describe a return of capital.
Diversification
Financial Planning
Spreading funds across various sectors of investment markets and/or fund managers to minimise risk.
Diversified Fund
Investment
An investment fund that invests in a broad range of asset classes (eg. fixed interest, shares, property). The fund manager can alter the composition of the funds in light of changing economic and investment conditions, in order to achieve the best results.
Dividend
Shares
The payment to shareholders in a company of their portion of a company's distributed profits. The portion is based on relative shareholdings. Usually paid at six-monthly intervals (known as an interim dividend after 6 months profit results and a final dividend after full 12 months results are declared).
Dividend Imputation
Shares
Gives investors in companies that pay Australian corporate tax rate (currently 30%) credit for the tax paid by the companies over the next couple of years. This makes dividends from most Australian companies "tax free" to many shareholders (if tax payer has a marginal tax rate of 30% or less). It also reduces the tax payable on income from other sources by low income earners.
Dividend Reinvestment Plan
Shares
A scheme that enables shareholders in a company to acquire shares instead of taking their dividends in cash.
Dollar-Cost Averaging
Financial Planning
The practice of investing amounts of money at regular intervals, regardless of whether the securities markets are declining or rising.
Double Orphan Pension
Centrelink
Paid to carers of a child where either both parents are deceased, or one parent is deceased and the other parent is either missing, been sentenced to prison for at least 10 years, or in a mental hospital/nursing home for an indefinite period, or the child is a refugee whose parents are outside Australia or missing.
Dow Jones Industrial Average
Shares
A price-weighted average of 30 blue-chip stocks (shares) that are generally leaders in their industry. The Dow Jones Average has been a widely used indicator of the U.S. stock market since 1928.
Drawdown
Loans
The disbursement of loan funds provided by the Bank.
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E
Early School Leaver
Centrelink
This applies to a Youth Allowance job seeker who: is less than 21 years old, and has not completed Year 12 or an equivalent qualification (Certificate Level II or above) and is not undertaking full time study as a Youth Allowance Full Time student.
Earned, Derived Or Received
Centrelink
In relation to income?the amount earned, derived or received by any means whether within Australia or outside Australia. For example by wages, salary, investment, commission, etc.
Earnings Worksheets
Centrelink
A worksheet provided by Centrelink to help customers work out their gross earnings and report the right details.
Easement
Property
A right that someone has to use the land belonging to another, e.g. a water authority may have a sewerage easement across part of your property.
Education Entry Payment
Centrelink
A payment made to certain Centrelink customers who enrol in an approved course of education.
Education Entry Payment Supplement
Centrelink
A temporary payment made to certain Centrelink customers who enroll in an approved course of education and are also entitled to Education Entry Payment. The payment will cease from 30 June 2010.
Eight Week Non-Payment Period
Centrelink
A penalty imposed on a job seeker when they are found to have committed a serious failure or became unemployed as a result of a voluntary act or misconduct. For example, they have failed to commence suitable employment, refused a suitable job offer, or are found to be persistently non-compliant. A job seeker's payment may be stopped for a period of eight weeks.
Electronic Message Reminder Service
Centrelink
An eService that allows Centrelink customers to receive reminders and important information messages via email or SMS.
Eligible Termination Payment
Superannuation
(ETP). The name given to the lump sum paid to a person who terminates employment or withdraws from a superannuation fund and which the Tax Office determines to be eligible for concessional tax treatment. While ETPs include payments from a superannuation fund, severance pay (e.g. redundancy) and commutation payments from a pension or annuity, they do not include lump sum payments for unused annual leave or long service leave.
Employee Benefits
Taxation
Additional benefits received by someone from their employer, such as bonuses and reimbursement for study.
Employer Contact Certificate
Centrelink
A Centrelink form signed by a prospective employer as evidence that a job seeker is actively seeking and willing to undertake suitable work.
Employment Declaration
Centrelink
A taxation form advising the Australian Taxation Office of a person's tax file number, entitlement to general tax exemptions, higher education contribution scheme (HECS) liability and/or claim for rebates.
Employment Pathway Plan
Centrelink
A formal document signed after 30 June 2009, negotiated by either Centrelink or an Employment Services Provider with a job seeker that contains all the activities, both compulsory and voluntary, that a person has agreed to undertake. This includes activities aimed to assist the job seeker on their path to employment.
Employment Self Service Facilities
Centrelink
Centrelink offices have facilities available for unemployed customers to use, including self service computers listing job vacancies, a telephone, photocopier, fax, and computers to prepare job applications and resumes.
Employment Separation Certificate
Centrelink
A certificate on which an employer lists details of a former employee. It includes the reason for ceasing work, the date work ceased and details of termination payments.
Employment Services Provider
Centrelink
An organisation contracted by the Department of Education, Employment & Workplace Relations to provide employment services to job seekers.
Encroachment
Property
Part of a house or establishment illegally overhanging the street or a neighbour's property.
Encumbrance
Property
An impediment to the use or transfer of the property in the form of an interest or right in the property, e.g. easement, mortgage or caveat.
Entitlement
Centrelink
A payment or service that an individual is able to claim.
Entry Contribution
Centrelink
The amount paid, or agreed to be paid, for a person's current right to occupy a special residence, such as a retirement village or granny flat.
Entry Fee
Investment
A fee payable by investors on entry to certain investment options.
Equality of Treatment
Centrelink
Citizens of Australia and another country with which Australia has an international social security agreement are treated the same in regard to the laws of social security. This ensures that people will not be discriminated against by either of the nations laws.
Equities
Shares
Stocks and shares that do not yield fixed interest, e.g. ordinary shares in companies like BHP, CBA, etc.
Equity
Centrelink
The degree of ownership in a property, or the amount paid towards ownership. It can also be the value of shares issued by a company.
Equity
Investment
The value of an asset after deducting any money owing on it.
Equity (Property)
Property
The difference between the market value of the property and the amount still owed on its mortgage.
Eservices
Centrelink
Service delivery channels that allow Centrelink customers and nominees to conduct Centrelink business online or using interactive voice response technology over the phone.
Establishment Fee
Loans
See Loan Application Fee.
Estate
Estate
All assets and liabilities belonging to a person. Real estate is a reference to land or to land on which there is a building, while personal estate is property other than land, and covers personal property such as bank accounts, furniture and motor cars.
Estate Planning
Estate
Refers to the actions which a person may take to arrange their affairs in order to maximise the value of their estate, minimise tax liability and give consideration to what should be included in a legal will, the appointment of an executor, provision for the power of attorney and the use of testamentary trusts.
Eviction
Property
The lawful expulsion of an occupant or tenant from real property.
Ex Dividend
Shares
A share where the seller, not the buyer, is entitled to receive the dividend.
Exceptional Circumstance Relief Payment
Centrelink
An income support payment for farmers and certain small business operators affected by drought.
Excess
Insurance
The amount of an insurance claim which you are required to pay before the insurer becomes liable to pay on the claim. This amount is specified in the insurance policy.
Exclusive Authority
Property
Written contract that gives one real estate agent the exclusive right to sell a property in a specified time period.
Executor
Centrelink
A person appointed to carry out the instructions in a last will and testament.
Executor
Estate
A person (or statutory trustee company or Public Trustee) named in a will to look after assets, pay debts and distribute the assets to the beneficiaries. (The feminine form of the word is "executrix".)
Exempt Asset
Centrelink
An asset that is not assessed under the Asset Test used by Centrelink. The most common exempt asset is a person's principal home.
Exempt From Tax
Centrelink
Income which is not assessable for taxation purposes.
Exempt Income
Centrelink
Income that is not assessed under the Income Test used by Centrelink.
Exemption
Centrelink
Circumstances that excuse customers from meeting standard requirements for payments and services.
Exit Assistance
Centrelink
Grants available to eligible farmers or irrigators who elect to exit farming.
Exit Fee
Centrelink
A fee that may have to be paid in order to make a withdrawal of money from a managed investment fund. This fee may be imposed as a penalty if a person wishes to withdraw money before an investment term has been completed.
Exit Fee
Investment
A fee payable by investors when withdrawing all monies from or closing certain investment options.
Expected Date of Confinement/delivery
Centrelink
The anticipated date of birth of a child. This date is relevant in determining the length of exemptions from activity tests and participation requirements for expectant mothers.
Expenses Incurred In Producing Income
Centrelink
All costs involved in deriving income, for instance travel costs, car maintenance, tools, books, clothing etc.
Extended Curtilage
Centrelink
A provision that allows senior customers with a 20-year attachment to their home and surrounding land to have the whole title exempt from the assets test as opposed to limiting it to the first two hectares.
Extended Lodgement Year
Centrelink
The financial year which is two years after the relevant financial year.
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F
Face Value of Shares
Centrelink
Either the nominal value of a share, the original value printed on the share, or value at the date of issue. The intrinsic (market) value is usually higher or lower.
Fail to Notify of a Change of Circumstances
Centrelink
Not advising Centrelink of a change of circumstances is an offence that may be punished with fines. If an overpayment results from this omission, it will be recovered from the recipient.
Fair Trading Office
Organisations
Fair Trading and Business Affairs, an office of the Department of Justice in Victoria and in New South Wales. In Queensland, Northern Territory and the Australian Capital Territory it is known as Consumer Affairs; in Western Australia, the Ministry of Fair Trade; in South Australia, the Consumer and Business Affairs, and in Tasmania as Consumer Affairs and Fair Trading.
False Or Misleading Statement
Centrelink
Where incorrect information has been supplied either accidentally or intentionally.
Family Actual Means Test
Centrelink
A test applied to a Youth Allowance or ABSTUDY customer, whose parent is a designated parent for Family Actual Means Test, to determine the customer's entitlement.
Family Assistance Office
Centrelink
(FAO) The office set up by the Commonwealth Government to provide families with a range of payments and services.
Family Member
Centrelink
Is usually, but not limited to, a partner, parent, sister, brother or child of the person.
Family Relationship Advice Lines
Centrelink
The Advice Line is a free national telephone service available to the general public, especially for callers who do not have a centre in their local area or who prefer to use the telephone. It is available from 8 am ? 8 pm Monday to Friday and 10 am ? 4 pm on Saturday (local time), except national public holidays.
Family Relationship Centres
Centrelink
Family Relationships Centres are a community resource providing information and referrals for families at all stages. They also provide individual, group and joint sessions for separating or separated parents (and other family members, where applicable) to help them make parenting plans and resolve disputes about their children without the need to go to court.
Family Responsibilities Commission
Centrelink
(FRC) Is responsible for providing Centrelink details of customers within the designated localities, under the Cape York Welfare Reform Trial, who the state has determined would benefit from being under Income Management from 1 July 2008.
Family Tax Benefit
Centrelink
(FTB) Payments to help families with the cost of raising children. It consists of two parts?FTB Part A and FTB Part B.
Family Tax Benefit Part A
Centrelink
An income tested payment to help raise children that increases with the number of FTB children in care.
Family Tax Benefit Part B
Centrelink
An income tested payment that provides additional assistance for single income families, including families with one main income earner. The rate is dependent on the age of the youngest child rather than the number of children in care.
Family Trusts
Taxation
Often used to minimise tax by diverting income from high income taxpayers to those who are in lower tax brackets. Most Family Trusts are discretionary trusts i.e. they provide the trustees with the discretion (flexibility) to pay income where it will be most tax effective.
Fares Allowance
Centrelink
Paid to tertiary students as well as ABSTUDY secondary students who have to live away from their permanent home for study. It repays the cost of the cheapest practicable form of public transport, regardless of transport actually used. Not payable for daily travel.
Fee Simple
Property
The greatest possible interest a person can have in real estate. Contrast with Strata Title and Stratum Title.
Fiduciary
Legal
A person who essentially holds the character of a trustee. Real estate agents and salespersons are considered by law to be fiduciaries, thus they have a duty to act primarily for the benefit of the principal (the person who employed them) and not their own. A fiduciary must act with the highest degree of care and good faith in relations with the principal and on the principal's business. Penalties for failing in fiduciary duties may be quite severe.
Field Assessor
Centrelink
A Centrelink officer with responsibility for investigating cases and seeking information from customers, employers etc. This information gathering is generally done by interviewing people in their homes and workplaces.
Financial Adviser
Financial Planning
A person who advises individuals on suitable forms of investment for their assets, considering their tax position, liabilities, personal circumstances, etc. May also be referred to as a financial planner. Financial advisers must have certain training and skills under Australian law.
Financial Hardship
Centrelink
Where a customer's liquid assets, such as bank balances and share holdings, are below a certain threshold.
Financial Information Service
Centrelink
(FIS) A free service offered by Centrelink, giving information which helps customers improve their standard of living by using their own money to the best advantage for their retirement security.
Financial Institutions Duty
Taxation
(FID). State duty on the receipts of financial institutions.
Financial Planner
Financial Planning
A professional person approved by the Australian Securities and Investments Commission (ASIC) as qualified to provide advice on all aspects of financial planning. This planning advice in the form of a Statement of Advice is important at all stages of adult life regardless of the level of financial resources.
Financial Planning
Financial Planning
The process of understanding different needs and financial objectives and to recommending an appropriate strategy. Some of the steps in financial planning process may include: Gather financial information, identifying financial and lifestyle goals, identifying any financial issues, preparing a financial plan, implementing the plan and reviewing and revising the plan at regular intervals, or when circumstances change.
Financial Planning Association
Organisations
(FPA). FPA is the peak professional body for financial planning in Australia. The FPA has an office in each capital city and a network of Chapters across the country, which provide a focus for business networking and professional development activities for members. FPA practitioner members manage the financial affairs of millions of Australians.
Financial Year
Centrelink
For income tax purposes, the year is taken from 1 July to 30 June. For companies it varies and might mean a calendar year. In other countries the financial year may have different start and end dates.
Financial Year
Taxation
Also known as the income year, runs from 1 July through to 30 June.
First Contact Service Offer
Centrelink
(FCSO) An online application, which guides the screening process when a person first contacts Centrelink to claim certain payments. It is intended to identify the customer's readiness, capability and capacity to look for and accept work.
Fiscal Policy
General
The Government's policy relating to its receipts and expenditure. Its potency as an economic tool stems from the fact that by spending more or less than it receives, the Government can affect the overall level of demand in the economy.
Fixed Expenses
Financial Planning
Expenses that remain the same, week after week, or month after month.
Fixed Interest
Investment
Interest paid at a predetermined and unchanging rate for a specified period of time on investments such as bonds.
Fixed Interest Rate
Loans
Where interest is paid (received) at a constant rate over the term of a loan (investment).
Fixed Rate Mortgage
Loans
A mortgage in which the interest rate does not change during the term of the loan.
Fixed Trust
Centrelink
A fund of securities, cash or other assets, whose management purchases shares from a number of companies and whose trust deed provides for a fixed portfolio of investments during the lifetime of the trust.
Foreclosure
Loans
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually results in the mortgagee selling the property by auction and the proceeds being used to service the mortgage debt.
Foreign Income
Centrelink
Income earned, derived or received from sources outside Australia, or periodical payments or benefits by the way of gifts or allowances from a source outside Australia.
Foreign Payment
Centrelink
An amount of foreign income payable to a person from a source outside Australia. The person who is entitled to receive the foreign payment can be asked to take reasonable action to obtain the payment.
Foreign Pension
Centrelink
Pension received from another country. Centrelink usually regards these pensions as income for the income test.
Forgone Wages
Centrelink
When a customer legally transfers ownership of a farm to a close relative, the value of any past contributions made to the farm by the close relative are taken into account when assessing gifting. Forgone wages include the value of unpaid work performed on the farm, improvements to the farm, purchases of livestock or equipment and the unpaid care of the customer.
Formula For Child Support
Centrelink
A legislative rule used by the Child Support Agency to calculate the level of child support payable by the non-custodial parent.
Foster Care
Centrelink
Temporary care of a child by people other than natural parents or legal guardians.
Franked Dividends
Centrelink
Dividends that carry a tax rebate. They lessen the gross amount of tax payable on taxable income of the shareholder.
Franked Dividends
Shares
Company/share dividends paid out of profits on which the company has already paid tax. The investor is then entitled to a reduction in income tax for that amount (imputation credit).
Franking Credits
Shares
Dividends of Australian companies that pay full company tax are known as fully franked dividends. Shareholders in such companies receive franking credits. In other words, a tax or franking credit is available to you as a shareholder so that tax is not paid twice on the company's profit. Surplus franking credits are not be refundable and that some Australian companies pay franking credits at less than 100% because they derive income from overseas.
Fraud
Centrelink
An intentional dishonest act or omission done with the purpose of deceiving, i.e. to gain an advantage.
Freedom of Information Act
Centrelink
(FOI). An Act to give members of the public rights of access to official documents of the Government of the Commonwealth and of its agencies. For Centrelink customers, this means they can see their own files and the rules used to make decisions about them.
Freehold
Property
An estate in real property which continues for an indefinite period of time. Freehold estates may be inheritable or non-inheritable. Inheritable estates include the fee simple absolute, the qualified fee, and the fee tail. Non-inheritable estates include various life estates which are created by acts of parties, such as an ordinary life estate, or by operation of law.
Friendly Society
Centrelink
Private associations of members who contribute to provide themselves with assistance in times of distress. Friendly societies provide for medical benefits or other expenses in cases of sickness or death.
Friendly Society Bond
Centrelink
Investments, which usually have a 10-year maturity period and are offered by friendly societies.
Fringe Benefits
Centrelink
An incentive or concession received in addition to a person's salary or wage, that is, a car or travel allowance.
Ftse 100 Index
Shares
Financial Times Stock Exchange 100 Index. The main index of the London Stock Exchange (LSE). An index of the 100 largest companies, by capitalisation, traded on the LSE. Commonly referred to as the 'Footsie'.
Full-Time Student
Centrelink
A person enrolled in an approved course at an approved Australian educational institution, and undertaking at least 75 per cent of the 'normal amount of full-time study'.
Full-Time Student Income Bank
Centrelink
Allows Youth Allowance, ABSTUDY and Austudy recipients to accumulate up to $6000 of any unused portion of their fortnightly income-free area.
Fund Manager
Centrelink
A person or body that manages an investment product.
Fund Manager
Investment
An organisation that invests or manages money on behalf of individuals or other organisations.
Funeral Bond Allowable Limit
Centrelink
The maximum amount a customer can invest on one or two funeral bonds and still qualify for an exemption under the income and assets tests.
Funeral Bond/investment
Centrelink
An investment of money, designed to assist with the investor's funeral expenses in part or in full. The investment matures upon the death of the investor.
Funeral Bonds
Investment
Investments that provide for payment of funeral costs. For pensioners, funeral bonds earn income that is tax exempt and savings grow in a tax-free environment. They also provide a relatively secure investment, the value of which does not count for the pension Assets Test.
Futures
Shares
A contract that obligates the owner to buy or sell a certain quantity and quality of an underlying asset at a predetermined price at a future date.
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Gainful Employment
Centrelink
Any employment performed for financial gain.
Gap Fee
Centrelink
The amount that each family contributes towards the cost of child care, in addition to the Child Care Benefit percentage that is provided by the government.
Garnishee
Centrelink
A notice issued to a third party which requires them to deduct money held on behalf of or given to a customer and forwarded to Centrelink, with or without the customer's consent.
Garnishee
Legal
To legally divert part or whole of someone's money or property to someone else, e.g. for Child Support Payments.
Gazumping
Property
Where a seller agrees to sell to one buyer but then either sells to another buyer or raises the price when two or more buyers show interest.
Gearing
Investment
Borrowing money to invest, usually in property, shares or other income-producing investments.
Gearing
Loans
The ratio of your own money and borrowed funds for investment. See Negative Gearing.
General Tax Exemption
Centrelink
The total exclusion from tax charges, for example, the first few thousand dollars of a person's earnings are free from income tax.
Gifting
Centrelink
Disposal of assets, including property, and income for less than their market value.
Gifting
Taxation
The process of giving money away in order to enhance the quality of life of the recipient. It may also reduce one's assets under the Assets Test for the Age Pension.
Good Faith (Bona Fides)
Centrelink
Good faith, or the Latin term 'bona fide', is the mental and moral state of honesty. A reasonable person, given the facts as presented to them, may receive something that they are not actually entitled to and due to their good faith, would not be considered to have acted fraudulently. Good faith is sometimes used as a synonym for credentials, background, or documentation of a person's identity.
Grandfathered
Centrelink
An exemption that allows an old rule to continue to apply to a customer's entitlement to a payment or benefit after a law has changed or a new law introduced.
Granny Flat Interest
Centrelink
A purchased right to reside for life in someone else's home or in a separate dwelling built on someone else's property.
Grant of Letters of Administration
Estate
Letters of administration is the authority given by the court under its seal for administration of the estate of an intestate or, where no executor is named (or is unwilling or unable to act), for administration with the will annexed. The authority is evidenced by the issue of a parchment document also called 'Letters of Administration' or 'Letters of Administration with the will annexed', the latter containing a copy of the will. It is the grant that evidences the administrator's appointment and entitles the administrator to collect the assets, pay the debts and distribute the estate in accordance with the terms of a formula laid down in the Wills Act. (See the study guide for a more detailed explanation.)
Grant of Probate
Estate
Probate of a will is approval of the validity of the will by the Supreme Court exercising its probate jurisdiction. Approval is given by an administrative officer generally called the Registrar of Probates, or in cases where there is doubt, by a judge. The approval is evidenced by the issue of a parchment document also called "Grant of Probate" or "Probate", which contains a copy of the will. It is the grant of probate that recognises the executor's standing and entitles the executor to collect the assets, pay the debts and distribute the estate in accordance with the terms of the will.
Grant of Representation
Estate
A term used to cover both grants of probate and grants of letters of administration to the legal personal representative.
Green Corps
Centrelink
A program for participants to preserve and restore the Australian environment.
Gross Annual Income
Centrelink
Full yearly income before any deductions, such as tax. Reportable superannuation contributions that include amounts voluntarily salary sacrificed to superannuation are included in gross income.
Gross Domestic Product
General
(GDP). A commonly used measure of the total market value of goods and services produced by an economy.
Gross Income
Centrelink
The amount of income in dollar value, derived, earned or received from any source before any tax is applied. Reportable superannuation contributions which include amounts voluntarily salary sacrificed to superannuation is included in gross income.
Gross Income
Taxation
The total amount of income earned (from wages or a salary) before any deductions including tax.
Gross Weekly Earnings
Centrelink
All income earned during a week before any deductions, such as tax. Reportable superannuation contributions that include amounts voluntarily salary sacrificed to superannuation are included in gross income.
Growth At A Reasonable Price
Investment
(GARP). A growth manager that tends to employ elements of 'value style' investing in its investment decision-making.
Growth Fund
Investment
A fund that has a higher proportion of assets in investments such as shares and property that are expected to deliver most of their returns through capital appreciation.
Growth Style
Investment
A growth style manager seeks companies whose earnings are projected to be superior to the market average.
Guardian
Centrelink
A person or organisation who has been given the right and responsibility to protect and make decisions on behalf of another person. Guardians do not necessarily assume the day-to-day care of the person in their guardianship.
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H
Half Pay
Centrelink
Payment of only half of a person's standard wages.
Hang Seng Composite Index
Shares
The main index for the Hong Kong Stock Exchange.
Hardship Advance
Centrelink
An advance of up to seven days of the person's first instalment of their payment or benefit. It is not an additional payment.
Health Care Card
Centrelink
A card issued to certain Centrelink customers, that entitles the card holder to a limited range of health, household, educational, recreational and transport concessions.
Health Insurance
Centrelink
Insurance taken out with a private health insurance company to cover oneself and family against the costs not covered by Medicare.
Hedging
Shares
An investment position taken to counteract the potential risk from another investment.
Holding Deposit
Property
An initial (goodwill) sum of money given to register interest in or bind the sale of real estate before the full deposit is paid. For example, if a property is purchased on Saturday, the agent may take a holding deposit of a few hundred dollars until the buyer can arrange for the full deposit to be paid on Monday.
Home Equity Line of Credit
Loans
A mortgage loan which allows the borrower to obtain multiple advances of the loan proceeds up to a specified percentage of the borrower's equity in a property.
Home Improvement Loan
Property
A loan made to a homeowner in which the home is used as collateral for the loan.
Home Visit
Centrelink
Visit to a customer's home by a Centrelink staff member to obtain more information.
Homeowner
Centrelink
A person who has a right or interest in the home in which they live.
Housing Expense Ratio
Property
The percentage of gross income that goes toward paying housing expenses.
Humanitarian Entrant
Centrelink
A humanitarian entrant is someone living outside their home country because they were subject to substantial discrimination leading to a violation of their human rights in their home country. Most humanitarian entrants are from refugee-like backgrounds, that is, living in a country of asylum, in a refugee camp, or displaced in their own country of origin.
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I
Illness Separated Couple
Centrelink
Where members of a couple are unable to live together in their home for an indefinite period because of the illness or infirmity of one or both of them and, as a result, their living expenses are greater than they would otherwise be.
Immediate Annuity
Centrelink
An annuity where payments commence straight away, that is, not a deferred annuity.
Immediate Annuity
Investment
An annuity which is purchased with a single payment and begins to pay out an income to the investor straight away, either for an agreed fixed period or for the life of the investor.
Impaired
Centrelink
Weakened, damaged, especially said of hearing or vision.
Imputation
Centrelink
A way of taxing dividends paid by Australian resident companies.
Imputation Credit
Centrelink
Once taxable income is calculated a person is allowed a credit for any tax already paid by the company on dividends (e.g. profits) distributed by the company to shareholders.
Imputation of Capital or Lump Sums
Centrelink
The giving of a weekly or monthly value to transfers of property, goods, or a lump sum of money.
Inability To Work
Centrelink
A person has a continuing inability to work if his/her impairment prevents them from doing their usual work for the next two years, doing work for which they are skilled and work for which they are being trained.
Inalienable
Centrelink
Ownership of something cannot be transferred to another person; for example, a Centrelink pension, benefit or allowance cannot be paid to another person.
Incapacitated For Work
Centrelink
Unable to work. This refers to both temporary and permanent incapacities.
Incidentals Allowance
Centrelink
An ABSTUDY allowance that helps pay for general course expenses and paid at the beginning of studies for the year. Different amounts are paid based on the length of the course.
Income
Centrelink
An amount earned, derived or received by a person in the form of personal earnings, money, profits or valuable considerations. May be from inside or outside Australia.
Income
Taxation
Any money a person receives.
Income Bank
Centrelink
When a student on Youth Allowance, Austudy payment or ABSTUDY has income in a fortnight under the income-free area, an Income Bank is created. The bank allows students to build up income credits to offset any income they later earn above the fortnightly income-free area so it doesn't affect their payments as much.
Income Confirmation System
Centrelink
Allows the automated transfer of a customer's income and payment details directly to third party organisations.
Income Disqualifying Limit
Centrelink
The amount of income earned, derived or received that will disqualify a person or couple from receiving a Centrelink payment.
Income Free Area
Centrelink
The amount a person may earn before their payment is affected and/or the amount a partner can earn before the customer's payment is affected.
Income From A Business Venture
Centrelink
The net amount arrived at after allowance has been made for the costs of running a business, but before income tax and other personal deductions are made.
Income From Boarders Or Lodgers
Centrelink
Payments received by a person who pays board or lodging to another person.
Income Splitting
Taxation
The action of apportioning income between family members instead of all of it going to one person. The effect for couples is to reduce total tax liability by allowing one or other or both of the partners to move to a lower tax bracket. Family trusts are often used for income splitting by diverting income to children and non-working spouses.
Income Stream
Centrelink
An income stream is a series of regular payments with at least one payment being made on an annual basis. Allocated pensions, market-linked pensions, annuities and defined benefits all fall into this category.
Income Stream
Superannuation
The term normally applied to the money earned from your investments. "Income Stream" products include life expectancy annuities (LEAs), allocated pension plans and lifetime annuities and are usually covered by Commonwealth Government legislation for tax and pension treatment.
Income Support
Centrelink
A pension, benefit, allowance or other kind of payment paid to a person under the Social Security Act 1991 or the Social Security Act 1947.
Income Tax
Centrelink
Tax imposed on wages and salaries of workers and on profits of businesses.
Income Tax Assessment
Centrelink
Calculation by the Australian Taxation Office of the income tax due over a financial year.
Income Tax Assessment Notice
Centrelink
An official notice containing income tax assessment.
Income Tax Deduction
Centrelink
Deductions that are allowed to be made from total earnings before the taxable income is assessed. Deductions, for instance, can be expenses incurred in producing income and in performing a job.
Income Tax Instalment
Centrelink
Instalments regularly deducted from a person's salary or wages in payment of income tax.
Income Tax Instalment Deductions
Centrelink
A customer can request for tax to be withheld from their Centrelink payment.
Income Test
Centrelink
Centrelink pays pensions, benefits or allowances only if a person's income is below a certain amount. Under this test, a person can have a certain amount of income without affecting their pension or allowance. This is called allowable income. A different income test applies to each payment type.
Income Test
Retirement
Is one of the two major tests (the other is the Assets Test) used to determine eligibility for an Age Pension. The Income Test is used to determine the amount of income assets should generate (e.g. "deeming") or actually earn (e.g. rent). This amount of income is then compared with thresholds set by Centrelink in order to calculate pension entitlement.
Index
Shares
A numerical measure of price movement in financial markets, e.g. the S&P/ASX 300 Index.
Index Manager
Investment
An index manager endeavours to replicate or copy the performance (returns) of a specific market index, such as the S&P/ASX300 Index.
Indexation
Centrelink
The adjustment of payments, i.e. wages, salaries, pensions or benefits to take into account rising costs. The most common form of indexation is the Consumer Price Index.
Indigenous Australians
Centrelink
Aboriginal and Torres Strait Islanders who meet the Commonwealth Government's definition.
Indigenous Call Centre
Centrelink
A Centrelink call centre service providing information and assistance to Indigenous customers.
Indigenous Customer Service Officer
Centrelink
(ICSO) Centrelink staff who deliver Centrelink services to Indigenous customers.
Indigenous Service Officer
Centrelink
(ISO) Centrelink staff who deliver Centrelink services to Indigenous customers.
Indigenous Wage Assistance
Centrelink
Provides a financial incentive to employers who provide ongoing employment to eligible Aboriginal and Torres Strait Islander people.
Industrial Action
Centrelink
Any action such as a strike or protest, taken by a union as part of the process of resolving a dispute with an employer or category of employers, usually disrupting normal work.
Industrial Shares
Shares
Shares in companies that are involved in the production of goods and services as distinct from those involved with raw commodities.
Inflation
General
An increase in the price of goods and services. This means that prices generally rise.
Insurance
Centrelink
Protection against the financial impacts arising in specified contingencies such as fire, accidents, death, damage or loss of property, as well as expenses with regard to personal injury and illness.
Insurance
Insurance
Financial protection against financial loss; an arrangement where an insurance company agrees to pay an amount of money to the insurance policy holder if a defined event occurs, in exchange for an insurance premium being paid.
Insurance Bond
Centrelink
An investment offered by a life insurance office. It usually has a 10-year maturity period that can be extended beyond maturity. It does not pay out interest to investors. Returns can only be obtained through fully or partially cashing them in.
Insurance Bond
Investment
A single premium investment product, issued by life insurance companies or friendly societies, which operates in the same manner as a unit trust except that the return is provided to the investor net of tax.
Insurance Premium
Insurance
The payment made to an insurance company in exchange for protection or financial help if (agreed) circumstances or events occur.
Intent To Claim
Centrelink
When a person contacts Centrelink to advise that they will be making a claim for payment or service within the following 14 days (or 28 days if outside Australia, recently bereaved or suffering a serious illness).
Interest
Loans
Payment for the use of money; the return earned on invested funds; the amount a borrower pays to a lender for the use of the borrowed money.
Interest Free Period
Loans
The time allowed, usually 55 days, in which new credit card purchases can be paid off without being charged interest, provided there are no unpaid amounts on the card from previous payment periods.
Interest Rate
Centrelink
A percentage at which interest is charged on a loan or paid on a savings account.
Interest Rate
Loans
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.
Interim Order For Child Support
Centrelink
An order made by a court for a custodian who needs child support urgently. The order has effect until an assessment is issued or a formal agreement is made.
International Social Security Agreement
Centrelink
A formal agreement between Australia and another country that allows for social security coverage for people who have lived and/or worked in both countries.
Interpreter
Centrelink
A person who verbally translates what is spoken from one language into another language. In the case of sign language, interpreters translate hand signals into speech and vice versa.
Interrupted Residence
Centrelink
A break in the continuity of a person's residence in Australia or another country. It usually means that the person has become a resident of another country.
Intestate
Estate
The term applied to dying without making a legal will which is wholly or partly invalid. If a person is intestate, the estate is dealt with by government under the laws of intestacy, i.e. Public Trustee in each State. If the will validly disposes of only part of the estate, then the balance of the estate is administered under intestacy provisions.
Invalid/ Invalidity Pension
Centrelink
The name given in many countries to their equivalent of Australian Disability Support Pensions.
Investment
Investment
An asset acquired for the purpose of producing or generating income or capital gains for its owner.
Investment and Financial Services Association
Organisations
(IFSA). An industry association established in late 1997 which acts as the collective voice of its member companies when dealing with governments and the general public. (Mostly represents life offices and fund managers.)
Investment Manager
Investment
An entity that specialises in the investment of money on behalf of investors.
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J
Job Capacity Account
Centrelink
Funding available to Job Capacity Assessors to purchase short-term services or support program to help job seekers who require this assistance to move onto an employment service provider.
Job Capacity Assessment
Centrelink
A full assessment of a person's ability to work involving the identification of a person's barriers to employment and any help that may be required to assist them to overcome those barriers.
Job Capacity Assessor
Centrelink
The person who conducts a Job Capacity Assessment. Assessors are able to directly refer people to services to help find and maintain employment.
Job Seeker Diary
Centrelink
Used to record job search efforts.
Job Services Australia
Centrelink
A national network of organisations dedicated to helping job seekers find and keep a job. Centrelink is the gateway to Job Services Australia, providing referral to, and information about, Job Services Australia providers and the services they deliver.
Job Services Australia Provider
Centrelink
A Job Services Australia provider role is to offer advice on searching for jobs, career options, employment programs, help arrange job interviews and help meet the obligations of job seekers while they are looking for work.
Jobs Education And Training Child Care Fee Assistance
Centrelink
(JETCCFA) Assistance with the cost of approved childcare. This is in addition to Child Care Benefit for eligible parents undertaking activities such as work, training, study or rehabilitation as part of an Employment Pathways Plan to assist them to enter or re-enter the workforce.
Joint Account
Investment
An account with a financial institution which is in the name of more than one person. A joint account is able to be operated independently by those persons.
Junior Wage
Centrelink
Legal minimum wage payable to workers between 16 and 21 years according to their age.
Justice of The Peace
Centrelink
(JP) A person appointed by the state government who can witness official declarations, usually for identification purposes.
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K
Key Tenant
Property
A major or primary tenant in an office building or shopping centre. Generally such a tenant leases a significant amount of the available space.
Kickback
Legal
Payment made to someone for referral of a customer or business. Generally speaking, kickbacks are illegal because, unlike a commission, a kickback is made without the customer's knowledge.
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L
Land Tax
Taxation
A State tax based on the value of a property (not the principal place of residence) that is paid by the owner.
Landlord
Property
A person who rents property to another; a lessor. A property owner who surrenders the right to use property for a specific time in exchange for the receipt of rent.
Language, Literacy And Numeracy Program
Centrelink
(LLNP) LLNP aims to improve job seekers' English language, literacy and numeracy skills to assist them in securing sustainable employment or to participate in further education and training.
Language, Literacy And Numeracy Supplement
Centrelink
(LLNS) The LLNS provides financial assistance for customers who want to improve their language, literacy and numeracy skills as part of their plan to return to work. Eligibility rules apply.
Lapse
Estate
The effect, when a person to whom a devise or bequest has been made, dies before the testator.
Large Family Supplement
Centrelink
Paid as part of Family Tax Benefit part A to families, with three or more FTB children.
Lawful Custody Allowance
Centrelink
A payment from Centrelink to ABSTUDY students who are imprisoned in a correctional institution, remand centre or youth training centre to assist with expenses associated with study, such as educational institution fees, textbooks, equipment, stationery and daily travel costs.
Lease
Property
A written agreement between a landlord and a tenant granting a period of tenancy of a property under specific terms and conditions.
Leasehold
Property
The right to use and have exclusive possession (but not ownership) of real estate for a specified period and subject to the fulfilment of certain conditions as recorded in a lease agreement.
Leasing
Loans
An agreement under which the owner of property allows use of that property for a specified period of time in return for set periodic payments.
Leave Entitlement
Centrelink
Amount of paid leave that a worker is entitled to. This can include recreation leave, sick leave, personal leave, long service leave, redundancy payment, payment in lieu of notice and other payments received on termination of employment.
Leave Loading
Centrelink
A salary bonus paid at the time annual leave is taken.
Leave Pay
Centrelink
Salary payments made when on leave.
Legacy
Centrelink
An item, for example, money or property that is handed down by an ancestor or predecessor.
Legacy
Estate
A gift made by will of personal property. The gift is known as a bequest and the donee a legatee. To bequeath is to give personal property by a will.
Legal Personal Representative
Estate
The executor or administrator of the estate.
Legislative Scope
Centrelink
In the context of international social security agreements, a range of laws covered by the agreement between Australia and the other country.
Lessee
Property
A person leasing a property.
Lessor
Property
The owner of a property that is leased to another person.
Letter of Authority
Centrelink
Gives permission to another person to receive a message, letter or money on the original owners behalf.
Liabilities
Loans
Debts or financial obligations.
Liable To Repay
Centrelink
Under an obligation and legally required to pay back money.
Lien
Property
A legal claim against a property that must be paid off when the property is sold.
Life Estate
Property
Also called Tenancy for Life. A freehold interest (in real property) that expires upon the death of the owner or some other specified person.
Life Expectancy
Retirement
Is the period of time that a person can expect to live, on average, given their present age. On the basis of statistics, life expectancy tables are drawn up which are used as a basis for retirement investment products such as fixed term annuities.
Life Insurance
Centrelink
Insurance against the financial risks of death. Either a lump sum or an annuity will be paid by the insurance company at the death of the insured person to the person who is nominated by the insured in the policy. The surrender value of the policy is the value assessed under the assets test.
Life Interest in Land
Estate
A life interest in land is a right held by the life tenant to the use and enjoyment of the land for life. The life tenant may use the property for his or her own purposes or may rent it. On the death of the life tenant the property vests in whoever is entitled to the next succeeding interest, which may be another life interest or an interest in remainder. See remainderman.
Lifestyle Changes
Financial Planning
A change in a person's circumstances that can make a change to their financial situation such as marriage, children, schooling, inheritance, illness, losing a partner, job loss etc.
Light Duties
Centrelink
Reduction in duties, generally following a period of incapacity or an incident. A person recovering from a severe illness is sometimes placed on light duties.
Limited Liability Company
Centrelink
Companies in which the liability of the shareholders is limited to the amount (if any) unpaid on their shares. Limited liability companies will have the word 'Limited' or 'Ltd' after their name.
Line of Credit
Loans
An agreement by a lender to extend credit up to a specified amount for a specified time for a specified purpose. See Home Equity Line of Credit.
Liquid Asset
Investment
An asset, cash or otherwise, that can be converted into cash.
Liquid Assets
Centrelink
The person's and their partner's cash and readily realisable assets. Includes shares, debentures, bank deposits, and moneys on loan.
Liquidity
Investment
The ease with which an investment can be converted into cash with minimum loss.
Listed Company
Shares
A company whose shares can be bought and sold on a stock exchange.
Listed Property Trusts
Investment
Trusts that invest in property and are listed on the Stock Exchange. Their value is determined by the stock market and can rise or fall.
Listing
Property
A written contract between an owner and a real estate agent, authorising the agent to perform services for the principal involving the owner's property.
Loan
Loans
A sum of borrowed money (principal) that is generally repaid with interest.
Loan Application Fee
Loans
Also called establishment fee. A fee paid to a lender for processing a loan. Loan to Valuation Ratio The amount of the loan financed as a proportion of the property value, expressed as a percentage.
Loan Term
Loans
The length of time covered by a loan.
Lock Out
Centrelink
A situation in which employees are prepared to work as directed within the terms of their employment agreements but are prevented from doing so by their employer.
Lodgement
Centrelink
Delivering a document to Centrelink. Most commonly, a form that needs to be lodged that will continue the customer's payments or verify the customer's circumstances.
Lodgement Date
Centrelink
The date a form should be lodged, or was lodged, with Centrelink.
Lodgement Year
Centrelink
The financial year immediately following the relevant income year.
Long-Service Leave Entitlement
Centrelink
A worker's right, accumulated over the years, to an extra, fully paid, extended period of leave.
Long-Term Disability
Centrelink
A disability, injury, illness or impairment that is likely to last for at least two years. In the case of a long-term disability, advice should be sought on the eligibility for payment of the Disability Support Pension.
Lump Sum
Superannuation
The term used to describe the amount of money provided on retirement by the superannuation fund as an alternative to the payment of a pension. Some superannuation funds provide only a lump sum benefit, others a pension with a lump sum alternative.
Lump Sum Advance
Centrelink
A prepayment of a person's income support payment, pension or Family Tax Benefit entitlement, which is subsequently repaid by deductions from fortnightly payments. There are rules that apply to granting the Advance Payment and the amount that can be advanced.
Lump Sum Compensation Payment
Centrelink
Payment for damages or injury paid out in one amount of money.
Lump Sum Payment
Centrelink
A payment of a benefit at the end of the financial year, rather than payments on a fortnightly basis.
Lump Sum Preclusion Period
Centrelink
When a person receives a lump sum compensation payment, a preclusion period is calculated during which the person is deemed to have been compensated for lost earnings or lost earning capacity. During the preclusion period the person (and their partner) cannot be paid any social security income support payments.
Lump Sum Superannuation Payment
Centrelink
Superannuation moneys paid out in one sum, instead of regular (smaller) payments.
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Maintenance Income Test
Centrelink
A separate test used to assess child support or spousal maintenance income when calculating the rate of Family Tax Benefit or Child Care Benefit payable.
Major Disaster
Centrelink
An event that caused a significant number of deaths, serious illnesses or serious injuries or caused severe and widespread damage to property.
Managed Fund
Investment
An investment that pools money from several investors and uses it to buy a particular type of investment, such as shares.
Managed Investment
Centrelink
A type of investment where a person's money is pooled and invested by a fund manager. Includes insurance bonds, rollover funds, public unit trusts, etc.
Managed Investment Funds
Investment
Pooled investments of many people under the control of a skilled fund manager. Since the amount of funds in the pool is large, the investments can be spread by the fund manager over a range of investment types. The fund manager makes the investment decisions (for which a fee is charged) and if the fund earns a good income the investors receive the benefit.
Management Expense Ratio
Investment
(MER) Now referred to as Total Expense Ratio or TER. Provides a measure of the total annual cost of investing in a fund and is a useful guide when comparing annual costs of different investment funds. It refers to a calculation of the total amount of fees deducted from an unlisted managed fund, and all expenses incurred by the fund, expressed as a percentage of the average fund size for the period under review.
Mandatory Continuous Adjustment
Centrelink
(MCA) Mandatory continuous adjustment applies to Family Tax Benefit (FTB) instalment customers only if a projected overpayment is identified when the customer's income estimate is updated.
Marginal Tax Rates
Taxation
(MTR). Australia 's sliding tax rates, ranging from 0% to 45% of your salary depending on the salary amount.
Market Value
Centrelink
An amount one would receive by selling property or shares.
Market Value (Property)
Property
The price at which a seller is happy to sell and a buyer is willing to buy. This assumes that there is sufficient activity in the marketplace to generate enough buyers and sellers so that neither party controls the price. Establishing the market value is the objective of an appraisal.
Market-Linked Fund
Investment
A pooled investment fund (also see 'pooled fund') that is valued according to movements in the market to which it is linked.
Market-Linked Investment
Centrelink
An investment with an approved deposit fund, deferred annuity, public unit trust, insurance bond, friendly society or other eligible investment that is not an accruing investment or an investment in property, stocks or shares.
Marriage-Like Relationship
Centrelink
A relationship that is similar to a legal marriage but has not been formalised by a legal ceremony. When referring to relationships this term has generally been replaced with 'member of a couple' which can include opposite-sex or same-sex relationships. See 'Member of a couple' definition.
Master Trusts (Or Funds)
Investment
Allow you to spread your investments over a range of trusts (each of which has its own spread of investments such as fixed interest securities, property and shares both Australian and international) by using one trust, a Master Trust. All of your investment flows through the chosen Master Trust, minimizing your paper work and allowing you to change your investment strategy with minimal cost.
Maternity Immunisation Allowance
Centrelink
A non-income tested payment to encourage parents to immunise their children. It is generally paid in two amounts.
Maternity Leave
Centrelink
A type of leave granted to employed women preceding and following childbirth.
Means Test
Centrelink
Test of a person's entitlement having regard to the person's total income and assets.
Medical Certificate
Centrelink
A certificate signed by a medical practitioner, which provides essential information concerning an individual's current capacity to work.
Medical Evidence in Support of Claim
Centrelink
Medical details provided by a treating doctor in addition to a clinical report, X-rays or other medical documents in support of a claim (e.g. for Disability Support Pension, Sickness Allowance).
Medical History
Centrelink
All relevant facts to establish someone's present medical condition including details of previous illnesses, operations, stays in hospitals or clinics.
Medical Report
Centrelink
A report written by a medical practitioner (or treating health professional in some cases) regarding a person's medical condition.
Medical Treatment
Centrelink
Any treatment by a medical practitioner in or out of hospital for the purpose of treating a patient's illness or condition.
Medicare
Centrelink
Australia's National Health Insurance Program.
Medicare Levy
Taxation
The amount of money paid regularly by taxpayers which is used by government to assist in providing public health services. The level is deducted from wages and salaries as a fixed percentage of income or paid annually by non salary earners.
Member of a Couple
Centrelink
A person is a member of a couple if they are living with another person as their partner, where both people are over the age of consent (applicable to the relevant state or territory), are living together on a permanent or indefinite basis, are not in a prohibited relationship, and are either: legally married, or in a registered relationship (opposite-sex or same-sex), or in a de facto relationship (opposite-sex or same-sex). In determining if a person is in a member of a couple relationship, consideration must be given to the following five factors: the financial aspects of the relationship, the nature of the household, the social aspects of the relationship, any sexual relationship between the people, and the nature of the people's commitment to each other.
Minimum Period
Centrelink
The least period of residence and/or credited contributions required by a person to use the provisions of an international agreement between Australia and another country.
Misconduct
Centrelink
Improper conduct. In the workplace misconduct refers to an act of misconduct or misbehaviour resulting in the job seeker being dismissed from employment due to that act. Misconduct may also need to be determined for a No Show, No Pay failure where the job seeker does not behave appropriately in a program or activity.
Misrepresent One's Circumstance
Centrelink
To knowingly provide false or misleading information. For example, not declaring one's full income, giving incorrect information about a de facto relationship or their dependants.
Mobility Allowance
Centrelink
A payment to people with an illness and/or disability who are undertaking paid work, voluntary work, job search or vocational training who cannot use public transport without extra help because of their illness and/or disability.
Monetary Policy
General
Economic policy, usually handled by the Reserve Bank, concerned with the management of money supply, interest rates and financial conditions.
Money Market
Shares
A market for trading short-term securities.
Mortgage
Loans
A legal agreement under which you take out a loan and use the property being purchased as security for that loan.
Mortgage Discharge Fee
Loans
A fee charged by some lending institutions for finalising a loan.
Mortgage Insurance
Investment
A policy that insures the lender against the borrower defaulting on a loan. Most lenders generally require insurance when borrowing more than 80% of the property value. The premium is paid by the borrower.
Mortgage Offset
Loans
A non-interest earning account that is offset against a home loan to reduce the total interest payable.
Mortgagee
Loans
The lender in a mortgage agreement.
Mortgagor
Loans
The borrower in a mortgage agreement.
Multicultural Service Officers
Centrelink
(MSOs) MSOs consult widely with local migrant and refugee communities on government programs and help Centrelink improve its services. They also inform these communities on English language courses and how overseas skills can be recognised.
Multi-Manager Style
Investment
A funds management style where the investment management is conducted by more than one fund manager. It can be used for diversified or single asset class funds.
Multiple Birth Allowance
Centrelink
Payable to customers with three or more Family Tax Benefit children born during the same birth.
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Nasdaq
Shares
National Association of Securities Dealers Automated Quotations. A computerised system that provides brokers with the price of shares and securities traded on the New York Stock Exchange (NYSE) and over the counter. Unlike the NYSE, the NASDAQ has no physical trading floor.
Negative Gearing
Financial Planning
Where the return on an investment is not sufficient to cover the costs on the investment, e.g. property maintenance and interest on the loan.
Net Income
Centrelink
Income after the deduction of tax-liabilities. In the commercial sense, it is gross income from a business minus the cost of running the business.
Net Income
Taxation
The amount of someone's income that they can use or spend; the amount remaining once tax and payroll deductions are made.
Net Worth
Financial Planning
The value of a person's assets minus liabilities.
New Enterprise Incentive Scheme
Centrelink
A scheme that helps with training and supports people interested in becoming self employed.
Newly Arrived Residents' Waiting Period
Centrelink
Many social security payments have a 104-week newly arrived resident's waiting period, meaning no benefits are payable upon arrival in Australia until the waiting period has expired (104 weeks after being granted permanent residence). Refugees, humanitarian visa holders and their immediate family members are exempt.
Newstart Allowance
Centrelink
Paid to people who are considered to be unemployed, capable of undertaking, available for and actively seeking work, or temporarily incapacitated for work.
Nikkei-225 Stock Average
Shares
The main Japanese stock market benchmark that measures the top-rated 225 companies listed on the first section of the Tokyo Stock Exchange.
No Show, No Pay Failure
Centrelink
A failure applied to instil a 'work like' culture to employment services by reinforcing the importance of attending and fully participating in compulsory activities and job interviews. Results in a penalty amount equivalent to one 'working' day's pay.
Nominee
Centrelink
A person appointed by a Centrelink delegate and usually nominated by a customer to handle their Centrelink affairs because they are unable to do so themselves.
Nominee
Legal
A person who, in a limited sense, acts for or represents another.
Non-Cash Maintenance
Centrelink
Any non-cash child support or payment to a third party such as payment of the child's school fees or payment of the custodial parent's rent or mortgage.
Non-Custodial Parent
Centrelink
Parent who does not have custody of the eligible child or children.
Non-Homeowner
Centrelink
A person who is not regarded as a homeowner for Centrelink purposes. Non-homeowners who pay rent may be eligible for rent assistance.
Non-Lodger
Centrelink
A non-lodger is a recipient or the partner of the recipient, who is required to lodge an individual tax return for the relevant income year but has not done so by June of the lodgement year.
Non-Preserved Benefits
Superannuation
That portion of superannuation benefits that can be accessed/withdrawn at any time.
Non-Protected Special Category Visa Holder
Centrelink
A New Zealand citizen who was not in Australia on 26 February 2001, or for 12 months in the two years immediately before that date, nor was assessed as 'protected' before 26 February 2004. A person under this category does not meet the definition of an Australian resident.
Northern Territory Emergency Response Income Management
Centrelink
Income Management in the Northern Territory involves the setting aside of 50 per cent of regular fortnightly instalments and 100 per cent of advances and lump sums of most Centrelink payments made to customers who live in declared relevant Northern Territory areas, to ensure they are spent on priority needs of those individuals and their families.
Northern Territory Emergency Response Income Management Exclusion
Centrelink
The exclusion of a customer from Northern Territory Emergency Response Income Management as a result of the customer having an excluded payment nominee, i.e. a payment nominee who is a public trustee or a person that is not subject to Northern Territory Emergency Response Income Management.
Northern Territory Emergency Response Income Management Exemption
Centrelink
The application of a decision that a customer is exempt from Northern Territory Emergency Response Income Management. This decision can be made either by Ministerial determination, or by a Centrelink discretionary decision in accordance with Northern Territory Emergency Response Income Management policy.
Northern Territory Emergency Response Income Management Exit
Centrelink
The circumstance where a customer ceases to be subject to Northern Territory Emergency Response Income Management. This can be due to a customer's income support payment (and partner's income support payment, if applicable) being cancelled; the customer passing away; income management for the customer's community ending; or the customer being subsequently exempted from income management after having income management applied.
Northern Territory Emergency Response?declared Relevant Northern Territory Areas
Centrelink
A specific area or community that the Minister determines is a prescribed area in which Northern Territory Emergency Response Income management is to apply.
Northern Territory Emergency Response?school Nutrition Program
Centrelink
A breakfast and/or lunch service for school-aged children from declared relevant Northern Territory areas, that aims to support better school attendance and to help with learning and engagement in education.
Notice of Default
Loans
A formal written notice to a borrower that a default has occurred and that legal action may be taken.
Notice of Dismissal
Centrelink
To be given notification of dismissal from employment.
Null and Void
Legal
That which cannot be legally enforced, as with a contract provision that is not in conformance with the law.
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Offer
Legal
Conveyed intent by one party to form a contract, which may have conditions and stipulations, with another party.
Offer of Suitable Employment
Centrelink
An offer of work within reasonable travelling distance suited to a person's training, ability or experience, paying at least the applicable statutory rate and offering safe working conditions.
Offset Account
Loans
An account linked to a mortgage account so that the interest earned is applied to reduce the interest on the mortgage.
Old System
Property
Title Also called Common Law Title. A series of title documents called a 'chain of title'. The overall title is sound only if the every document in the chain is sound. The legal investigations are complicated and expensive. An old system title may be converted to a Torrens Title and is automatically converted following sale.
Ongoing Fee (Loans)
Loans
A loan maintenance fee charged regularly over the life of the loan.
Online Service
Centrelink
An eService that allows customers or nominees to view or update Centrelink or Family Assistance Office business online via the Centrelink Website.
Ono
Legal
Or nearest offer.
Open Listing
Property
A type of listing agreement in which more than one real estate agent may be employed to sell the property. The owner pays a commission only to the agent who finds the buyer. This listing is also known as a simple listing or a general listing and the owner is not obligated to pay anyone a commission if the owner personally sells the property. Such a listing is often used by builders and developers who agree to pay a sales commission to any agent who sells a house or lot in their subdivision.
Open Space Land
Property
Land which has not had improvements such as buildings and other structures added to it. Such land is often left in a subdivision by a developer or stipulated by a local authority for recreational use or for personal use by the owner.
Option
Shares
An option is an agreement which gives the option holder the right to buy or sell a specific security at a stipulated price and within a set period of time. If the option is not exercised during that time, the money paid for it is forfeited.
Ordinary Shares
Shares
Securities or fully paid shares that represent an ownership interest in a company. They carry voting rights (for the shareowner) and entitle the shareholder to receive dividends if the company makes a profit and decides to pay dividends.
Ordinary Waiting Period
Centrelink
A one-week waiting period that people claiming Newstart Allowance have to serve before the payment begins. The ordinary waiting period can be waived in hardship cases.
Original Decision Maker
Centrelink
A Centrelink officer who made the original decision relating to a payment or service affecting a Centrelink customer.
Orphan
Centrelink
Children whose natural or adoptive parents are deceased.
Outside School Hours Care
Centrelink
Childcare provided outside of standard school hours where children are supervised and cared for by adults other than their own parents or guardians.
Overpayment
Centrelink
Where a person has been paid more than they are entitled to receive. If it is found to be legally recoverable, it is known as a debt.
Overseas Qualifications Unit
Centrelink
(OQU) State-based organisations that help Australian residents to assess their qualifications and experience gained outside Australia.
Overweight
Financial Planning
Taking a greater exposure to one investment market or security compared with a benchmark or neutral position. The opposite of underweight.
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Parental Income And Assets Test
Centrelink
Young people may have their rate of payment reduced by their parents' taxable income or by the level of their assets.
Parenting Payment
Centrelink
A payment that provides financial assistance for people who are principal carers of a child/children. Parenting Payment can only be paid to one person who cares for a child.
Parenting Plan
Centrelink
For the purpose of Family Assistance and the Social Security Act, a parenting plan is a written signed and dated agreement between parents, detailing arrangements for the day-to-day care and upbringing of their child. Although it may specify a third party as providing care of a child, only the natural or adoptive parents can be party to the agreement and sign the document.
Participation Failure
Centrelink
A failure applied when a person who is subject to a compulsory Activity Test or participation requirement fails to meet their requirements without a reasonable excuse. Participation failures ceased to apply to job seekers who fail to comply with their Activity Test or participation requirements post 1 July 2009 although Youth Allowance and Austudy students are still subject to such failures.
Participation Requirements
Centrelink
Participation and activity test requirements refer to the activities Centrelink customers must complete to receive certain Centrelink payments, including Newstart Allowance, Youth Allowance (job seeker), Parenting Payment and Special Benefit.
Partner
Centrelink
A person is considered to be partnered if they are married, in a registered relationship (either opposite-sex or same-sex), or in a de facto relationship with another person (either opposite or same-sex) and they are not living separately or apart on a permanent or indefinite basis.
Partner Allowance
Centrelink
Paid to the partners of pensioners and allowees who were born on or before 1 July 1955, have no dependent children and little or no recent workforce experience. This is a closed payment with no new grants after 20 September 2003.
Partnered Rate
Centrelink
Amount of payment per fortnight paid to either person who is a member of a couple, or to one member of a partnership.
Part-Payment
Centrelink
Payment consisting of an amount, which is less than the normal full payment.
Part-Pension
Centrelink
A rate of pension that is less than the maximum rate because of the impact of the person's assets, income or compensation, or is a proportional rate due to portability or qualification under an international social security agreement
Passed In
Property
The highest bid fails to meet the reserve price of a property at an auction and consequently does not sell.
Passive Management
Investment
A style of investment management that aims to achieve investment returns in line with those of a specified market or index. May also refer to a style of investment management that focuses on holding investments for an extended period rather than trading to maximise gains.
Pay As You Go
Taxation
(PAYG). The system where employers automatically deduct tax from each employee's gross pay each pay period.
Payable
Centrelink
A customer may be qualified for a Centrelink payment but not payable due to income and assets, waiting periods or precluding payments.
Paye Tax
Taxation
An abbreviation for 'Pay As You Earn' tax, where employees have income tax deducted from their wages or salary by their employer.
Payg Payment Summary?individual Non Business
Centrelink
People who get a taxable payment from Centrelink will receive this or a 'Statement of Payment' at the end of the financial year.
Payg Summary
Taxation
The summary sent to employees by their employer(s) at the end of each financial year; outlines the total paid to the employee and the amount of tax that was taken out.
Payment In Arrears
Centrelink
Payment meant to cover a period in the past.
Payment Outside Australia
Centrelink
Refers to a social security payment that can be paid to a person while they are living or are temporarily outside Australia.
Payment Summary
Centrelink
Statement issued by an employer, for tax purposes, showing gross income, tax deducted, net income and period worked. A certificate is also issued to Centrelink customers showing how much payment was paid and how much tax was taken out.
Payroll Deductions
Taxation
Amounts subtracted from gross income for items like employee benefits.
Payslip
Centrelink
Official notification by a company, business or government department, issued with each periodical payment, specifying the gross amount of wages or salary and the various additional payments and deductions made, for example, for tax and superannuation.
Pension
Retirement
A regular, periodic payment to an individual, made by either the Government or a superannuation fund.
Pension Age
Centrelink
The age at which a person becomes eligible for an Age Pension.
Pension Bonus Bereavement Payment
Centrelink
A payment to the surviving partner of a deceased member of the Pension Bonus Scheme who did not make their claim for Pension Bonus before their death.
Pension Bonus Scheme
Centrelink
A scheme that provides a tax free lump sum incentive for older Australians, who were qualified for Age Pension before 20th September 2009, to defer claiming the Age Pension and remain in the workforce.
Pension Bonus Top-Up
Centrelink
The difference between the initial amount of Pension Bonus paid and the amount of Pension Bonus that would have been paid using the highest pension rate in the 13 weeks after grant of Age Pension. (The highest pension rate does not include any component due to indexation of pension rate or allowable limits.)
Pension Loans Scheme
Centrelink
Retired people of age pension age who can't get a pension because of their income or assets (but not both), or those who only receive a part pension, can apply for a loan. The loan is secured against real estate owned in Australia.
Pension Payday
Centrelink
The day on which fortnightly pension entitlements are paid.
Pension Supplement
Centrelink
A fortnightly payment, consisting of three components, paid to eligible income support recipients and portable for up to 13 weeks of a temporary absence from Australia.
Pension Supplement Basic Amount
Centrelink
The first component of the Pension Supplement, which is taxable if the primary income support payment is taxable. It is portable where a temporary absence exceeds 13 weeks or for permanent absences from Australia, if the primary payment is payable.
Pension Supplement Component For Pension Bonus
Centrelink
(PSCPB) An amount included with the basic Age Pension rate used to calculate Pension Bonus Payment.
Pension Supplement Minimum Amount
Centrelink
The third component of the Pension Supplement. The full amount is paid, after means testing, some income support payment is payable.
Pension Supplement Remaining Amount
Centrelink
The second component of the Pension Supplement.
Pensioner Account
Centrelink
A savings account offered by a bank, building society or credit union which will pay the 'bank deeming rate' on all or part of the account. The account balance is at call. These accounts are usually available only to Centrelink pensioners and allowees and to Veterans' Affairs pensioners.
Pensioner Concession Card
Centrelink
All eligible Centrelink pensioners will receive this card, which provides concessions including low cost medicines, reduced fares on public transport, and reductions in property, water rates and energy bills. Private companies and organisations as well as state and local government bodies may also provide discounts.
Pensioner Education Supplement
Centrelink
Paid to sole parents, carers, disabled people and other people receiving certain Commonwealth income support payments who are studying full-time or part-time in an approved course.
Period of Residence
Centrelink
The period(s) of time that a person is considered to be resident in a particular country.
Periodic Gifts Or Allowances
Centrelink
Regular payments made to a person, usually by near relatives. Such payments are exempt income for pension purposes, but assessable for other payments.
Permanent Residence
Centrelink
The place (e.g. home, city) where a person usually lives. It is also the status granted by the Department of Immigration and Citizenship and allows a person to stay in Australia indefinitely.
Permanent Resident
Centrelink
In relation to Australia, a person who has made Australia their permanent or usual country of abode. The person would normally live in Australia or at least their permanent home would be located in Australia.
Permanently Incapacitated For Work
Centrelink
A person who has a permanent incapacity and is unable to work.
Permanently Separated
Centrelink
When there is a breakdown in the relationship between a couple. This usually involves a physical separation where the couple is estranged, living separated lives, and usually residing at separate addresses. Circumstances should be such that the separation is likely to be permanent.
Permissible Income
Centrelink
The amount of income allowable before an entitlement is affected.
Personal Contributions
Superannuation
In relation to superannuation, personal contributions are payments made to a fund from an individual's after-tax salary or other financial source, e.g. investment dividends, inheritance. Also referred to as 'after-tax contributions' or 'undeducted contributions'.
Personal Effects/household Contents
Centrelink
This makes up a person's normal household contents and personal effects, i.e. clothing, books, television video recorder, collectables, jewels, etc.
Personal Expenses
Centrelink
Money spent for one's own personal needs.
Personal Identification Number
Centrelink
(PIN) A confidential number used when accessing or providing data.
Personal Income Test
Centrelink
Personal gross income is assessed. Income above the income free area reduces payment.
Personal Scope
Centrelink
In relation to international agreements, allows an Australian resident or a person who is a resident of the country with whom an international agreement on social security is with, to come within the terms of the agreement.
Pharmaceutical Allowance
Centrelink
A fortnightly amount added to a person's maximum basic rate to offset the cost of prescription medicines available through the Pharmaceutical Benefits Scheme.
Pharmaceutical Benefits Scheme
Centrelink
A scheme which aims to provide timely, reliable and affordable access for the Australian community to necessary and cost effective medicines.
Phone Service
Centrelink
An eService that allows customers to hear or update Centrelink or Family Assistance Office business over the phone.
Physical Impairment
Centrelink
An impairment that affects a person's physical bodily functions.
Place A Child In Care
Centrelink
Place a child in care of an institution or approved foster home. State welfare departments responsible for children usually do this.
Placement
Centrelink
Putting someone in a certain job or allocating a physical place of employment or training. Also refers to placement in an approved program or activity.
Pooled Fund
Investment
A number of individuals place their funds into one investment product fund (fund) that is then managed by an investment manager on behalf of all the investors.
Pooled Superannuation Trust
Superannuation
(PST). A PST is a scheme with a trustee approved by APRA, which is used only for the investing the pooled assets of regulated superannuation funds, approved deposit funds, life offices and registered organisations. PSTs are taxed under special provisions of the Tax Acts. When holders of units in PSTs dispose of their holdings, they do not need to pay any additional amounts in tax.
Portability
Centrelink
A system allowing social security payments to be made while a customer is outside Australia.
Portability
Superannuation
The ability to transfer benefits from one investment or superannuation fund to another.
Portability of Agreement Benefits
Centrelink
The right of a person to transfer benefits paid under an international social security agreement outside the territory of the country which granted the benefits.
Portable Pension
Centrelink
A pension, which under certain conditions, can be paid to customers residing in, or temporarily present in another country.
Portfolio
Investment
A collection of investments that are all owned by the same individual or organisation.
Portfolio Planning
Financial Planning
The task of arranging investments in a way that suits the particular investment profile of the individual investor.
Potential Capacity For Work
Centrelink
It is the consideration of the range of occupations a person is physically and intellectually capable of performing.
Power of Attorney
Estate
Is a document usually drawn up by a solicitor by which a person appoints another person (the attorney) and sets out what the attorney is authorized to do. It is used to cover emergency situations in which, because of absence, accident or illness, a person is unable to take essential actions of their own behalf (such as withdrawing money from a bank account and signing documents). One needs to consider very carefully who is the appropriate person to be given your power of attorney, particularly if that person is not your spouse. Enduring Power of Attorney provides for a nominated person (e.g. spouse) to hold power of attorney for you where a medically qualified person certifies that you cannot sign documents.
Pre-Grant Interview
Centrelink
Interview held before claim for pension, benefit or allowance is processed.
Premium
Insurance
The price charged by an insurance company for providing insurance cover.
Pre-Qualification
Loans
The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan.
Preservation
Superannuation
A regulatory requirement that certain superannuation benefits cannot be accessed until a condition of release has been satisfied or the member has reached retirement age.
Preserved Benefits
Superannuation
Benefits within a superannuation fund that cannot be accessed until the fund member turns 55 and/or retires, or a 'special circumstance' has been met (e.g. severe financial difficulties or permanent incapacity).
Primary Earner
Centrelink
The member within the family, who earns the highest income.
Primary Producer
Centrelink
A person whose main occupation is farming, fishing or forest operations.
Prime Rate
Loans
The interest rate that banks charge their preferred customers. Changes in this rate can influence other rates including mortgage interest rates.
Principal
Loans
The amount borrowed or still to be repaid. The part of the monthly payment that reduces the balance of the mortgage.
Principal Carer
Centrelink
An adult who has legal responsibility either alone or jointly with another person for the day-to-day care of a child is wholly or substantially in the adult's care.
Principal Home
Centrelink
A dwelling house, flat or home unit where a person usually lives. The private land adjacent to a dwelling house that does not exceed two hectares is considered to be part of the principal home and subsequently an exempt asset. Where the title on the principal residence exceeds two hectares, this title (not adjoining others) may be exempt from the assets test if the following three criteria are met; the customer is age pension age and qualifies for an Age Pension, AND the property has been the customers principal residence for 20 years or more AND the customer is making effective use of productive land to generate income considering their capacity to do so.
Privacy
Centrelink
Centrelink has a legal obligation to comply with the Privacy Act 1988, which contains principles about how information that identifies an individual is handled.
Privacy Act
Centrelink
A provision to protect the privacy of individuals.
Private Agreement
Centrelink
Parents can choose to have their child support contributions to be registered with the court, and not through the Child Support Agency. These child support payments will be made privately.
Private Company
Centrelink
A private company is a separate legal entity set up to run a business or hold investments. Its shares are not publicly traded. Some private companies will not be considered under the private companies rules for Centrelink purposes due to size or other elements. Once a customer is determined to be involved in a private company, Centrelink will attribute the amount of company income and assets to be assessed for the customer involved. Any income received by a customer or deemed income on loans, will be assessed as income for the customer, even if they are not attributed with any of the company assets or profit.
Private Sale
Property
The sale of a property by the owner without the services of a real estate agent.
Private Treaty
Property
Sale The sale of property, through an estate agent, by negotiation.
Private Trust
Centrelink
Private trusts include family trusts, testamentary trusts, constructive trusts and fixed trusts of fewer than 50 members. Once a customer is determined to be involved in a private trust, Centrelink will attribute the amount of trust income and assets to be assessed for the customer involved. This assessment will be based on a number of factors including, ability to control the trust, provision of funds to the trust, beneficial ownership of trust assets and any distributions made by the trust. Any income received by a customer or deemed income on loans, will be assessed as income for the customer, even if they are not attributed with any of the trusts assets or profit.
Privatisation
General
The sale of Government-owned services which permits the public to gain direct ownership via an allocation of shares.
Probate
Estate
Is a certificate granted by the court that certifies that a will is valid, thereby giving authority to the executor to administer the terms of the will.
Product Disclosure Statement
Investment
A document required by law that provides specific details about the financial product being offered.
Prohibition of Instalment Payments
Centrelink
(PIP) Customers who receive Family Tax Benefit (FTB) on a fortnightly basis will have their payments stopped if they (and/or their partner) do not lodge tax return(s) or advise they are not required to do so. This will apply to any outstanding income tax returns they have failed to lodge for financial years they were receiving FTB.
Proof of Identity
Centrelink
(POI) People claiming most Centrelink payments must prove their own and their partner's identity by producing original documents from Centrelink's approved list. These documents will show proof of birth in Australia or proof of arrival in Australia and other documents from the list that will add up to 100 points.
Property Trust
Investment
A unit trust that pools investors' funds into property investments.
Proportional Rate
Centrelink
The amount of pension paid outside Australia to a person depends on the time a person has resided in Australia, usually during their working life (16 to age pension age). The rate is calculated by dividing the period of residence or contributions in one country, by the total time spent in both countries and multiplying the result by the total benefit payable.
Prosecution
Centrelink
Individuals or organisations who breach sections of the Social Security or Crimes Act may be liable for prosecution before the Courts. Imprisonment, fines and bonds can apply.
Prospectus
Investment
A document issued under the control of the Australian Securities and Investment Commission (ASIC) that provides detailed information to enable the public to make an informed decision about investing money in the product. A prospectus must be issued by anyone seeking money from the public for investment in securities.
Protected Special Category Visa Holder
Centrelink
A New Zealand citizen who was in Australia on 26 February 2001, or for 12 months in the two years immediately before that date, or was assessed as 'protected' before 26 February 2004. A person under this category who is residing in Australia meets the definition of an Australian resident.
Proxy
Legal
A person who represents another, particularly in some meeting. Also, the document giving to another the authority to represent.
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Q
Qualified Acceptance
Legal
An acceptance of an offer subject to a condition or conditions which must be met. This is essentially a counteroffer since new conditions are included.
Qualified Buyer
Loans
A buyer who has satisfied a lender that he or she is financially able to qualify for a loan. Qualifying the buyer is one of the primary steps taken by the lender as part of the loan process.
Qualified/qualification
Centrelink
To meet all fundamental conditions for a claim to be granted, although the payment must also be payable.
Qualifying Australian Residence
Centrelink
Defined in Section 7(5) of the Social Security Act 1991 as a period of 10 years residence in Australia.
Qualifying Residence Exemption
Centrelink
An exemption from serving the residence period to qualify for Centrelink payments. Granted to certain refugees.
Qualifying Residence In Australia
Centrelink
The period(s) of residence in Australia required before a person can qualify for most Centrelink payments. The periods vary depending on the type of payment.
Quartile
General
A statistical measure dividing a sample into four numerically equal groups. Thus top quartile in a funds management context means the top 25% of the fund managers in a particular category or asset class.
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R
Rally
Shares
A rise in the sharemarket or a particular share price after a period of falling prices.
Rapidconnect
Centrelink
A referral process that gives unemployed people early access to an employment service provider and employment opportunities.
Rate of Payment
Centrelink
Amount of benefit, pension, allowance to be paid. The rate depends on, for example, whether a customer is single or partnered, has dependent children or students, and their level of income or assets.
Rate of Return
Centrelink
The calculation of the amount earned by a managed investment or share over a 12-month period. It includes the gross increase or reduction in the value of the investment, as well as the cash distributions or dividends paid to the investor during the period.
Rate Of Return
Investment
How quickly money in a savings or investment account grows.
Rates Notice
Centrelink
Advice from local authorities stating the amount owed for local services such as sewerage and water in relation to ownership of real estate.
Ratification
Centrelink
In relation to international agreements, it means that the respective governments to the agreement give their formal approval or consent to the agreement.
Readily Available Funds
Centrelink
Are assets that can be converted to cash and include proceeds from the sale of non-liquid assets, cash on hand, amounts deposited with a bank, building society, credit union or other financial institution fixed and term deposits, bonds, shares in public companies, debentures or other investments, and loans made by a person.
Real Estate Agent
Property
A person licensed to negotiate and transact the sale or lease of real estate on behalf of the property owner.
Real Estate Institute of Australia
Organisations
(REI). National representative body of real estate agents. REIV representative body in Victoria; REIQ in Queensland, etc.
Real Property Land
Property
Land with or without improvements.
Realisation of an Asset
Centrelink
Sell or transfer title of an asset to another person.
Realise An Investment
Centrelink
When the investment matures or the investor fully or partially withdraws funds out of a saved investment.
Reasonable Benefit Limit
Superannuation
(RBL). A previous Government-imposed maximum on the benefits that a person can receive into their superannuation fund at a concessional tax rate.
Reasonable Steps To Obtain Work
Centrelink
Actions showing that someone is genuinely looking for a job. For example, applying for jobs, phoning for job interviews, looking at positions vacant in newspapers.
Reassessment
Centrelink
Recalculation of a person's entitlement due to a change in their circumstances.
Rebate
Taxation
An amount that is to be subtracted from the amount of tax payable. Now know as a Tax Offset.
Recession
General
A significant slowdown or minor contraction in the economy (as opposed to a depression which is a major contraction in economic output). A recession is sometimes defined as a period where a nation's Gross Domestic Product (GDP) declines over two consecutive quarters.
Reconcile
Centrelink
Resume living together as a couple.
Reconciliation
Centrelink
The process of checking Family Tax Benefit against a family's actual income for the financial year, to ensure that they are paid the correct amount of money.
Reconciliation Action Plan
Centrelink
(RAP) A tool to help organisations build positive relationships between Indigenous and non-Indigenous people.
Reconciliation Australia
Centrelink
Reconciliation is building mutual respectful relationships between Indigenous and other Australians that allow us to work together to solve problems and generate success that is in everyone's best interests.
Reconnection Failure
Centrelink
A failure applied following the application of a connection failure and the job seeker's failure to attend the subsequent reconnection appointment. This results in a financial penalty until the job seeker reconnects or is no longer required to reconnect with their provider or Centrelink.
Recovery of an Overpayment
Centrelink
Obtain repayment of an amount paid which was more than the person's correct entitlement.
Recovery Proceedings
Centrelink
Action to obtain repayment of overpayment.
Redundancy
Centrelink
A case of there being not enough work to do in the workplace. Some workers may be declared redundant, laid off or dismissed.
Redundancy
Taxation
Occurs where an organisation carries out structural change in order to cut costs and, in the process, lays off staff (i.e. makes staff redundant). It involves payment to the redundant employee of a lump sum which is intended to provide financial support while they search for another job. Most redundancy payments are tax free up to certain limits.
Re-Entry Visa, (Or Resident Return Visa)
Centrelink
A visa that allows a permanent resident who is not an Australian citizen, to return to Australia following a period living or travelling outside Australia.
Reference Number
Centrelink
A unique number given to every Centrelink customer. See Customer Reference Number (CRN).
Referral
Centrelink
Arranging for a person to attend an appointment for further assessment, or to access an additional service or other service, depending on their circumstances.
Refinance
Loans
The process of paying off one loan with the proceeds from a new loan using the same property as security.
Refugee
Centrelink
People who have fled their country of origin because of persecution, war, or natural disasters.
Refugee Contact Officers
Centrelink
Provide timely and effective assistance to help newly arrived refugees in targeted rural and regional areas. They act as the first point of contact and coordinate service appointments and other related contacts within Centrelink.
Refugee Status
Centrelink
Recognition by Australia that a person is a refugee. Relaxed residence requirements for Centrelink payments apply to such people if they hold specific refugee visas.
Refugee Visa
Centrelink
A document authorising a person who is found to be a refugee or seeking asylum, to stay in Australia for resettlement.
Refuse an Offer of Work
Centrelink
If a person refuses an offer of suitable work and thus remains unemployed, payment of certain income support payments may cease or a serious failure non-payment period may be imposed.
Registered Agreement
Centrelink
An agreement for child support made between the non-custodial parent and the resident parent and registered with a court or the Child Support Agency (CSA). It is legally enforceable and cash components may be collected by the CSA.
Registered Care
Centrelink
Paid care that is provided other than by approved care providers. Care providers can include, for example, family, friends and nannies. The carer must be registered with the Family Assistance Office.
Registered Relationship
Centrelink
A registered relationship is one that is registered under prescribed Australian state or territory laws that provide for registration of certain couple relationships, including civil partnership schemes (currently available in Victoria, Tasmania and the Australian Capital Territory). A registered relationship can be between people of the opposite-sex or same-sex.
Regular Savings Plan
Investment
An agreement in which an investor pays a regular amount at a nominated frequency into an existing scheme (investment fund).
Re-Imbursement of Medical Expenses
Centrelink
Commonwealth benefits relating to the provision of medical, dental or pharmaceutical services, and also payments made to registered health funds for these services. These reimbursements are excluded from the definition of income for the purpose of the income test.
Release of Information
Centrelink
Confidentiality and privacy legislation prohibit staff from releasing customer information without legal authority. Customers who want Centrelink to release information about them to another person or agency must give Centrelink an authority to release the information to that person or agency.
Relevant Income Year
Centrelink
The financial year in which family assistance entitlements were paid or were claimed for (past period claims).
Remote Area Allowance
Centrelink
Payment to Centrelink recipients living in specified remote areas.
Remote Area Service Centre
Centrelink
(RASC) Centrelink offices located in remote areas. The RASCs predominantly service Indigenous customers and are generally staffed by local Indigenous people.
Rent
Centrelink
Rent is the amount payable by a person as a condition for occupying their principal home and includes amounts paid for: board and lodgings (includes meals and accommodation), or lodgings (accommodation), or site fees for a caravan, tent, mobile or other structure, or mooring fees for a vessel, or service and maintenance fees provided in a retirement village, hostel or aged care facility.
Rent Arrears
Centrelink
Rent payments due for a previous period but not yet paid.
Rent Assistance
Centrelink
Rent Assistance is an extra payment provided to help some customers pay their rent. It gives extra assistance for low income, singles, couples and families who rent accommodation generally in the private rental market.
Rent Deduction Scheme
Centrelink
Allows Centrelink customers in public housing to have their rent deducted from their social security payments and sent directly to the housing authority in their state or territory.
Rent-Free In Return For Services
Centrelink
Where no rent is charged but a tenant is expected to do some work for the owner, for example, gardening, caretaking.
Reparation Order
Centrelink
Where a magistrate orders a debtor to repay a debt through a court.
Reporting Statement
Centrelink
A fortnightly statement covering income for a particular period, which must be regularly submitted in order to continue receiving certain Centrelink payments.
Reserve Price
Property
The minimum price which a seller will accept at auction.
Residence
Centrelink
A person's usual place of living, i.e. their house, home unit, flat, caravan, etc. It may also refer to the state of residing in a country, that is, the usual country of residence. A person can still be resident in a country although they may be temporarily out of that country.
Resident Parent
Centrelink
The parent with whom a child lives all or most of the time and has care of the child.
Residential Care Assessments
Centrelink
The income and assets assessments provided by Centrelink on behalf of the Department of Health and Ageing for aged care purposes.
Residential Costs Option
Centrelink
ABSTUDY assistance for full-time tertiary students receiving the away from home rate and living in a residential college attached to a university, or in a hostel.
Residentially Qualified
Centrelink
Meets the residence requirements for a specific payment.
Resource Shares
Shares
Shares in companies involved in commodity-related activities such as mining and energy.
Respite Care
Centrelink
Short term care of the disabled and the elderly, in or outside the home, to provide relief for their carers.
Restitution Payment
Centrelink
Payment made by the governments of particular countries to compensate people who were victims of Nazi persecution in World War II. Certain compensation payments made by Austria and Germany are considered as exempt income.
Retirement Income Stream
Retirement
Is the term applied to the income derived in retirement from a pension or from investments or a combination of both. The government's retirement policy incorporates certain types of investments that are approved income streams with special advantages. These include allocated pensions and life expectancy annuities.
Retirement Income Stream
Shares
An investment product that provides a regular income in retirement.
Retirement Planning
Retirement
Retirement planning takes into consideration the amount of money needed to live the desired lifestyle. It's not just a plan to create the wealth, but also ways to manage funds into retirement, with the right pensions or other strategies to make sure that income is properly managed. Retirement planning can happen at any age. Starting planning for retirement early can take advantage of the miracle of compound interest, where savings earn interest on the interest.
Retirement Savings Account
Retirement
(RSA). A superannuation account maintained solely for retirement income purposes. RSAs are portable, owned and controlled by the member and capital guaranteed. The balance of the account cannot be reduced by the crediting of any negative interest or earnings or by changes in the market value of assets, but may be reduced by fees and charges.
Retirement Village
Centrelink
Residential accommodation for people aged 55 years or more, comprising of self-care units, and/or serviced units and/or hostel units.
Retirement Village Resident
Centrelink
A person who has their principal home in a retirement village.
Retrenched
Centrelink
Dismissed from employment in order to reduce the employer's costs.
Return
Financial Planning
The amount received or earned on money which has been invested.
Reversionary Bonus
Centrelink
A bonus issued by an insurance company not paid directly to the policy holder but added to the sum insured.
Reversionary Option
Retirement
A pension or annuity allows nomination of a second person (in most cases it must be a dependent e.g. spouse/partner) who will continue to receive all or part of the annuity or pension if pension/annuity owner dies.
Review
Centrelink
Can refer to a review by Centrelink of a customer's entitlement, or to a review requested by a customer where the customer disagrees with a decision.
Review Form
Centrelink
A form posted out periodically to Centrelink customers asking them to state any change in their circumstances over the preceding period.
Right of First Refusal
Property
A provision in an agreement that gives a party the first opportunity to purchase or lease the property before it is offered for sale or lease to others.
Right of Survivorship
Estate
In joint tenancy, the right of the survivors to acquire the interest of a deceased joint estate.
Risk
Financial Planning
The chance that you may not receive the returns you are expecting or that an unfortunate event will occur.
Risk Management
Insurance
The various ways or strategies used to manage potential personal or financial loss.
Rolled Over Amount
Centrelink
The Eligible Termination Payment that is placed into a rollover fund.
Rollover
Superannuation
Transfer of superannuation money from one approved superannuation fund to another.
Rollover Fund
Centrelink
A type of investment into which an Eligible Termination Payment (ETP) may be placed for later use. On leaving a job, a person may be entitled to an ETP. 'Rolling Over' Is transferring an ETP into a rollover fund.
Roof Pitch
Property
The slope of the roof.
Routine Assessment Method
Centrelink
The calculation of Family Tax Benefit, taking into account any child support payments that the family receives.
Rural Call Centre
Centrelink
A Centrelink Call Centre that is dedicated to providing services for rural, regional and remote parts of Australia.
Rural Services Officers
Centrelink
Connect rural customers to Centrelink services through outreach, appointment or by telephone.
Rural Transaction Centre
Centrelink
Centrelink participates with other government agencies, credit unions and financial institutions to provide a rural township with a range of services and facilities based on the needs of the community.
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S
Safety Net
Centrelink
The Australian social security system is designed to be a safety net for all Australian residents. It is the provision of payments and services by Centrelink for those Australians who cannot provide for themselves.
Salary Sacrifice
Centrelink
Salary sacrificing is a process whereby an employee can replace their entitlement to future earnings from employment with a combination of non-cash salary benefits and a reduced cash salary entitlement. Employees may enter an arrangement with their employer to sacrifice salary for an increase to their superannuation entitlements or for other non-cash benefits such as child care fees, vehicles and more. Most salary sacrifice is included as income for all income support payments.
Salary Sacrifice
Superannuation
Part of your before-tax salary can sometimes be "salary sacrificed" straight into superannuation which means it is taxed at a beneficial rate (15%), and paid before income tax (lowering your taxable income). Many people find this a valuable way to save for retirement so ask your employer if it is available to you.
Savings Provision
Centrelink
A condition within a new piece of legislation that exempts people from the effects of the new legislation. Therefore the laws that were previously in place will continue to apply to those people who are eligible.
School Fees Fringe Benefit
Centrelink
A person receives a school fees fringe benefit if their employer pays an amount to them, or to a school, for primary or secondary level education. The amount may be for book or equipment fees for either a dependent child of the person or person's partner or a child of the family who is getting Newstart Allowance. The value of a school fees benefit is the actual amount of the payment.
School Leaver
Centrelink
A person who has just left secondary school and is entering the workforce for the first time
School Nutrition Program
Centrelink
(SNP) Refer to Northern Territory Emergency Response?School Nutrition Program.
School Term Allowance
Centrelink
An ABSTUDY term payment available to students under 16 years of age who have a parent/guardian in receipt of a certain Australian government payment, Community Development Employment Project (CDEP) wage, or who holds a current Health Care Card. Students must also attend at least 85 per cent of each term to be eligible.
Seasonal Work
Centrelink
Work only available at a given time of the year mainly due to factors related to climate, e.g. fruit picking, snow season jobs etc.
Second Mortgage
Loans
A mortgage that, on the sale of a property, is paid off only when the first mortgage is paid.
Secondary Earner
Centrelink
The member within the family, who earns the lesser income.
Secure Online Mail
Centrelink
An eService that allows customers to view and/or print Centrelink or Family Assistance Office letters online.
Securities
Shares
A form of contract representing ownership in shares, fixed interest and derivatives.
Security
Loans
The property that is pledged as collateral.
Self-Managed Superannuation Fund
Superannuation
(SMSF). A superannuation fund managed by one person or a small team of individuals. They are regulated by the Australian Taxation Office (ATO) and have to meet numerous regulatory criteria.
Seller's Market
Property
When demand for property is greater than supply. The result is greater opportunities for owners who may find someone willing to offer the asking price or even a figure greater than the asking price. Contrast with Buyer's Market.
Seminar
Centrelink
Short intensive course of study or meeting, from one day to a few weeks in duration.
Seniors Supplement
Centrelink
A payment to Commonwealth Seniors Health Card holders. Customers have the option to decline the payment.
Separated
Centrelink
A person not living with their partner as a result of a breakdown in, or a withdrawal from the relationship, not just a physical separation. The couple are living separate lives, usually residing at separate addresses. The separation is likely to be permanent or indefinite.
Separated Under One Roof
Centrelink
People who are no longer a member of a couple but still live in the same home.
Separation Agreement
Centrelink
The agreement made by a separated couple on maintenance, financial arrangements, and who will be responsible for the children.
Separation Order
Centrelink
An order issued by a court, usually the Family Court, setting out the terms of a separation.
Serious Failure
Centrelink
Where a job seeker refuses an offer of suitable employment, fails to commence employment or is found to be persistently non-compliant with Activity Test or participation requirements, a serious failure non-payment period may be applied.
Service Pension
Centrelink
A means tested income support payment from the Department of Veterans' Affairs (DVA) for eligible veterans with qualifying service, and is paid on the grounds of age or invalidity. It is not possible to receive DVA service pension and a social security payment at the same time.
Service Pension For Carers
Centrelink
A means tested income support payment from the Department of Veterans' Affairs (DVA), paid to relatives, non-relatives and partners, providing constant care to a severely handicapped veteran. New payments are no longer available from DVA.
Service Pension For Partners
Centrelink
A means tested income support payment from the Department of Veterans' Affairs (DVA) for eligible partners, living as members of a couple (are legally married, in a registered relationship or in a de facto relationship) with a veteran. The term partner includes: spouses, de factos (of opposite-sex or same-sex), widows, and widowers. It is not possible to receive DVA service pension and a social security payment at the same time.
Servicing The Loan
Loans
The periodic, normally monthly, collection of mortgage interest and principal repayment and other mortgage- related expenses, such as property taxes and property insurance.
Set Aside
Centrelink
Usually used in a review or appeal situation, it means to change a decision. It is the opposite to 'affirm'.
Settlement
Property
The sale of a property is finalised by the legal representatives of the vendor and the purchaser, mortgage documents come into effect, costs are paid and the new owner takes possession of the property.
Settlement Date
Centrelink
The date on which a full payment (settlement) is made.
Severance Pay
Centrelink
Money received by a worker on leaving a job. This may include accumulated sick pay, recreation leave pay etc. It is the amount paid to an employee on termination of an employment contract. It may also include one (or two) weeks' pay in lieu of notice where a worker is dismissed.
Severely Disabled
Centrelink
A person is considered to be severely disabled if their physical, psychiatric or intellectual disability makes the person totally unable to work for at least the next two years. The person will be unable to benefit within the next two years from participation in a program of assistance or a rehabilitation program or if the person is totally blind.
Share
Shares
An investment that represents ownership in a company or corporation.
Share
Shares
Part-ownership in a company. Shares include certain rights (eg. to participate in the appointment of directors, to receive dividends, to receive a share of the surplus assets in a company's dissolution). Different types of shares include ordinary shares, convertible notes and preference shares.
Shared Care
Centrelink
If the care of a child is shared between two or more carers who are not members of the same couple, they may be entitled to a percentage of Family Tax Benefit Part A for that child.
Shares
Centrelink
Shares are a form of part ownership of public or private companies. There are different classes of shares and there may be different rights in each class including the right to vote, receive a share of the profit through dividends, receive a share of the capital of the company, and receive bonus shares.
Sickness Allowance
Centrelink
A payment for people who are temporarily unable to work due to a short-term disability, illness or injury. Customers must have work or study to return to when they are well again.
Sickness Insurance
Centrelink
Insurance against the loss of income as a result of sickness.
Single
Centrelink
A person who is not married, in a registered relationship (either opposite-sex or same-sex), or in a de facto relationship with another person (either opposite-sex or same-sex).
Single Income
Centrelink
Refers to a family where only one family member is earning income.
Single Rate
Centrelink
Basic rate of payment to person who does not have a current partner.
Social Security
Centrelink
Social security is welfare for the Australian community. The majority of payments paid by Centrelink are authorised and defined under the Social Security Act, hence the reference to social security payments.
Social Security Appeals Tribunal
Centrelink
(SSAT) An independent statutory tribunal that reviews Centrelink decisions after they have been reviewed by an Authorised Review Officer.
Social Worker
Centrelink
Centrelink Social Workers can help with personal counselling and support through difficult times, and for various issues including domestic and family violence, severe financial hardship, homelessness, loss and bereavement. They can also assist with referral to appropriate services, including accommodation and crisis support.
Sole Parent
Centrelink
A person who is not a member of a couple and who has the care and control of at least one child.
Sole-Parent Family
Centrelink
Refers to a family where there is only one parent.
Sole-Trader Business
Centrelink
A business, owned by one person.
Source of Income
Centrelink
Every source from which income comes from, for example, investments, pensions, etc.
Special Benefit
Centrelink
Payment to some people not eligible for a pension or other benefit who are in hardship and not able to provide for themselves or their dependants. Special Benefit is subject to income, assets and available funds tests.
Special Benefit Activity Test
Centrelink
The Activity Test is a set of conditions that details what Special Benefit recipients must do in order to receive payment from Centrelink.
Special Category Visa
Centrelink
A visa which is automatically electronically issued to a New Zealand citizen who enters Australia. While not technically a permanent visa, it allows holders to remain in Australia indefinitely; live, work and study with no limitations.
Special Condition
Property
A condition that must be met before the contract is legally binding. For example, if buying a home the purchaser may specify that the contract is not legally binding until the purchaser has obtained a building inspection.
Special Disability Trusts
Centrelink
A Special Disability Trust is a trust established for a sole beneficiary, who has a severe disability, by the parent/s or a close relative for the future care and accommodation needs of the beneficiary. A Special Disability Trust may be exempt from the income and asset tests.
Special Preparatory Program
Centrelink
An English language tuition program specifically designed to suit eligible humanitarian entrants who may have difficulty adapting to the more formal environment of the Adult Migrant English Program.
Special Rate Disability Pension
Centrelink
A pension paid by the Department of Veterans' Affairs. Also referred to as a Totally and Permanently Incapacitated Pension.
Special Residence
Centrelink
A retirement village, granny flat or a home subject to a sale or leaseback agreement.
Spouse Superannuation Contributions
Superannuation
A situation where a higher-earning spouse makes contributions to their lower income-earning spouse's superannuation fund.
Stamp Duty
Property
A state tax on conveyance or transfer of real property calculated on the total value of the property (including chattels). This calculation varies from State to State.
Stand Down
Centrelink
To suspend or dismiss an employee from his/her job for disciplinary reasons, because of industrial action by a union, lack of work, or to reduce costs.
Statement
Centrelink
Information in support of a person's claim is usually written down in a statement and signed by that person. It is a legally binding document and it is therefore important that the person checks that everything written down is true before signing the statement.
Statutory Declaration
Centrelink
A written statement signed before a Justice of the Peace or another official.
Stockbroker
Shares
A stock exchange member who is authorised to buy and sell shares on behalf of others.
Strata
Property
Title A title to a unit or lot on a plan of subdivision associated with townhouses, units and blocks of flats and based on the horizontal and vertical subdivision of air space. Owners have a certificate of title, are absolute owners of a freehold flat and have an undivided share of the common property.
Strata Title
Centrelink
A strata title gives the holder the right to the exclusive use and occupation of a particular home, unit or flat. This also includes the right to use, in common with other strata title holders in the same building, the general amenities, i.e. stairways, lifts, passages and garden. The holder of a strata title to a particular home, unit or flat can sell or mortgage the same just as if it were a separate and single building.
Strategic Asset Allocation
Financial Planning
The composition of an asset mix within a portfolio, constructed with the objective of meeting the long-term liabilities of a fund, rather than being based on short-term views of relative performance of the various asset classes.
Stratum Title
Property
Also called Company Title. A stratum-title owner has a certificate of title and is the absolute owner of a freehold flat. An owner automatically becomes a member of a service company that administers, manages and maintains the property in which the owner's flat is registered.
Student Financial Supplement Scheme
Centrelink
A voluntary loan scheme giving full-time tertiary students the option of borrowing money to help cover study expenses. Closed to new applicants from 1 January 2004.
Subcontractor
Centrelink
A subcontractor offers his/her services to a contractor to perform part of the work contracted.
Subdivision
Property
A tract of land divided into individual lots for a housing development.
Substantially More Care
Centrelink
Substantially more care is defined as the amount of care a child with a disability needs as a result of that disability. It must be significantly more than that needed by a child the same age who does not have a disability.
Substitute Care
Centrelink
In relation to children, it means the care provided by a carer of a child (other than the natural or adoptive parent of the child) in the carer's home under the law of a state or territory. No substitute care allowance or other allowance for the upkeep of the child is paid to the carer by an authority of the state or territory.
Suffer a Substantial Loss of Income
Centrelink
Due to circumstances often beyond their control, a person finds they may have lost a lot of cash income or assets from their possession.
Suitable Paid Work
Centrelink
Activity tested income support recipients must actively seek, be capable of, and willing to undertake work that is deemed suitable for that person.
Super Confirmation
Centrelink
Allows administrators and trustees of superannuation funds to obtain information about a Centrelink customer's income support status, in order to assist the determination of the early release of superannuation on the grounds of financial hardship.
Superannuation
Centrelink
A sum paid periodically as a contribution to a superannuation fund. Often abbreviated to 'super'.
Superannuation
Superannuation
Money that you and your employers put aside in a superannuation fund during your working life to use when you retire.
Superannuation
Superannuation
A system where individuals set aside funds during their working life to fund retirement. The Government supports this system by requiring employer contributions on behalf of employees, providing tax concessions and regulatory controls for the benefit of contributors.
Superannuation Guarantee
Superannuation
An Australian Government requirement that employers pay a minimum amount, equivalent to a certain percentage of your earnings, into your superannuation fund or retirement savings account.
Superannuation Guarantee
Superannuation
A Government scheme whereby employers must contribute a prescribed level (currently a minimum of 9%) of an employee's annual income into a nominated superannuation fund.
Superannuation Guarantee Charge
Superannuation
A charge imposed on any employer that fails to contribute the prescribed level of superannuation for their employees.
Superannuation Payment/pension
Centrelink
Regular payment (usually monthly) received from a superannuation fund.
Superannuation Scheme/fund
Centrelink
A scheme or fund set up to pay retirement or invalidity benefits to members and/or their dependants. These benefits are financed by contributions from the member and/or their employer, which are invested by the fund manager.
Superannuation Settlement
Centrelink
Where a person's superannuation entitlement is paid all at once as a lump sum.
Supplement
Centrelink
A fortnightly supplement to assist with the cost of attending approved activities such as Work for the Dole, Green Corps, Drought Force and Language, Literacy and Numeracy Program. Available to eligible participants receiving Centrelink income support payments.
Surrender Value
Centrelink
The (reduced) value of an insurance policy if it is cashed (surrendered) before the agreed term has expired.
Survey
Property
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
Survivors Pension
Centrelink
A pension made in many foreign countries that is payable to the 'survivor' of a person who was qualified for a pension in that country. In most cases this means a widow or widower, but in some countries it can mean a child of the deceased contributor.
Suspended From Work
Centrelink
Temporarily dismissed from a job usually for disciplinary reasons.
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T
Tactical Asset Allocation
Financial Planning
An investment approach by which the allocation of a fund to different classes of asset is changed on a short-term basis to take advantage of perceived differences in their relative values.
Tax Deductible
Centrelink
The expenses deducted from income to work out taxable income.
Tax Deduction
Taxation
An amount that reduces a person's taxable income and so reduces the tax to be paid. It favours high income earners because they pay a higher rate of tax on their earnings than low income earners.
Tax Exempt Foreign Income
Centrelink
Any income for qualifying service on a particular approved project (under section 23AF of the Income Tax Assessment Act 1936) and/or foreign service (under section 23AG of the Income Tax Assessment Act 1936) for a continuous period of 91 days or more.
Tax File Number
Centrelink
A unique number given out by the Australian Taxation Office to every taxpayer.
Tax File Number
Taxation
(TFN). The personal tax identification number supplied to you by the ATO when you begin working and paying tax.
Tax Free Limit
Centrelink
The part of a person's income that is not taxable.
Tax Rebate
Centrelink
A reduction in the amount of tax that is otherwise payable.
Tax Threshold
Centrelink
The income level at which income becomes taxable.
Taxable Income
Centrelink
Taxable income has the same meaning as in the Income Tax Assessment Act 1997. Taxable income is the amount of assessable income received (commonly called gross income) less allowable deductions. A person's taxable income is the income as assessed by the Australian Taxation Office (ATO) and is advised to taxpayers by the ATO each income year on a Notice of Assessment.
Taxes
Taxation
Fees placed on income, property or goods which are collected by the government to support costs and programs.
Tax-Free Pensions Or Benefits
Centrelink
A recipient and/or their partner may not pay taxes on some types of pensions or benefits. These amounts are included as part of their adjusted taxable Income for Family Tax Benefit, Child Care Benefit and Baby Bonus income test purposes.
Telephone Allowance
Centrelink
Helps with the cost of line rental for a telephone, for people who hold a Pensioner Concession Card or Commonwealth Seniors Health Card, and who have a telephone connected in their name.
Temporarily Separated Couple
Centrelink
A couple living separately and apart but not on a permanent basis. This is not an illness separated couple.
Temporary Employee
Centrelink
A person who is employed full-time or part-time for a limited period.
Temporary Visa
Centrelink
Permission for a person to enter and remain in Australia for a specific period of time and for a specific reason. Holders of these visas are not allowed to remain permanently in Australia and are generally not entitled to social security payments.
Tenancy
Property
The right to occupy a property under agreed terms and conditions.
Tenancy for Life
Property
See Life Estate.
Tenancy In Common
Centrelink
When two or more people are entitled to the full use of a house or a block of land, but neither is entitled to the exclusive possession of any part of the house or the land.
Tenants in Common
Property
A type of joint tenancy in a property where two or more purchasers own a property in unequal shares. If one dies, his or her shares pass to his or her beneficiaries under the terms of the will. Contrast with joint tenancy.
Term Certain Annuity
Investment
An annuity where income payments are guaranteed to be paid for an agreed term.
Terminate A Contract
Centrelink
Ending an ongoing contract, such as employment or to supply goods.
Terminate Payment
Centrelink
Ending a customer's payment, as they are no longer entitled to it.
Territory
Centrelink
The area under the jurisdiction of each partner to an international social security agreement.
Threshold Amount
Centrelink
The level of income or assets where a payment will be affected under the income or assets test.
Title Deed
Centrelink
A legal document proving that someone is the owner of a block of land, and where appropriate, the house built on it.
Top Down Style
Investment
A method of analysing companies whereby an investor starts by looking at macro-economic factors and then incorporates industry trends and stock-specific factors. This style is the opposite of 'bottom up'.
Torrens Title
Property
A system of recording property ownership where registration on the Certificate of Title guarantees ownership.
Totalisation
Centrelink
The process of adding together the periods of credited contributions to the social security system of an international social security agreement country and/or the periods of Australian residence, in order to meet the minimum qualifying period for Australian social security benefits.
Townhouse
Property
A dwelling unit, generally having two or more floors and attached to other similar units via party walls.
Trade
Centrelink
People engaged in a particular line of business e.g. carpentry, plumbing, butchery etc.
Trade Union
Centrelink
An organised association of workers of a trade, or a group of allied trades, formed to protect and promote their common interests.
Traineeship
Centrelink
A scheme combining practical work with structured training to give young people experience and a nationally recognised qualification.
Training Course
Centrelink
A course that an individual may undertake, either as preparation for work or on-the-job training.
Training Supplement
Centrelink
A temporary supplementary payment for eligible Newstart Allowance and Parenting Payment recipients who commence an approved training course between 1 July 2009 and 30 June 2011.
Transfer
Property
A document registered at the Land Titles Office and noted on the Certificate of Title which verifies the change of ownership of a property.
Transfer From One Pension/benefit To Another
Centrelink
Generally there is no waiting period if a person transfers from one benefit/pension to another.
Transitional Rate
Centrelink
A rate of pension paid to eligible customers who were in receipt of a qualifying pension on 19 September 2009.
Translator
Centrelink
A person who converts written text from one language into another language.
Treating Doctor's Report
Centrelink
A form that needs to be completed by a person's usual doctor that outlines the person's medical history and condition. This is used by Centrelink to assess the customer's eligibility for a payment. This form is only used by people who cannot work or study because of their disabilities.
Trust Account
Centrelink
An account held by one person as a trustee for another, for example, a solicitor holding money in trust for a customer.
Trust Deed
Superannuation
A document that sets out the rules for the establishment and operation of a fund.
Trust Fund
Centrelink
A fund set up to manage capital and to distribute the proceedings of it to specially nominated beneficiaries, normally heirs or relatives of the creator of the trust fund.
Trustee
Centrelink
A person who holds assets for the benefit of others, in accordance with a written agreement or deed.
Trustee
Property
A fiduciary who holds or controls property for the benefit of another.
Trustee
Superannuation
The person or company that has the legal responsibility to ensure that the trust or superannuation fund is operated in accordance with the trust deed.
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U
Undeducted Contributions
Superannuation
Part of the superannuation environment and are contributions of money placed into a superannuation account for which no tax deductions have been claimed (they are therefore "undeducted"). They are returned to the retiree largely tax-free as part of his/her retirement strategies.
Under Licence
Property
Early possession of the property before settlement with the permission of the vendor. This usually involves the payment of rent.
Underlying Investments Or Securities
Financial Planning
In relation to managed investments, this normally means the investments selected by the investment manager. In the case of master trusts, underlying investments are the investments offered through menu options for an investor to select. The menu may include both listed and unlisted investments and investments only available through the master trust the investor has elected to use.
Underpayment
Centrelink
When a customer is paid less than the amount they are lawfully entitled to.
Understate Income
Centrelink
When people advise Centrelink that their income is lower than their actual amount of income, or under declare, to get payments at a higher rate than they are entitled to.
Underweight
Financial Planning
Taking on a smaller exposure to one investment market or security compared with a benchmark or neutral position. The opposite of overweight.
Undisclosed Income
Centrelink
Income received but not declared.
Unemployed Due To A Strike
Centrelink
Being without work due to industrial action. Includes strikes, bans and limitations imposed by a trade union.
Unemployment Non-Payment Period
Centrelink
If a job seeker voluntarily ceases suitable work or is dismissed from suitable work due to misconduct as a worker, they may be subject to an 8 week unemployment non-payment period before receiving an income support payment.
Unenforceable
Property
See Null and Void.
Unfit For Work
Centrelink
Not being able to work because of illness or injury.
Unfranked Dividends
Centrelink
Dividends paid by companies (which have not paid Australian company tax) and do not carry imputation credits.
Unique Identification Number
Centrelink
(UIN) A Department of Veterans' Affairs (DVA) unique identification number given to every DVA client.
Unit Trust
Financial Planning
A pooled investment structure set up under a trust deed where investors buy units in a trust that is managed by the fund manager on behalf of the investors. The value of units is set either by the market (if a listed trust) or by the trustees (if unlisted), who adjust the price according to valuations.
Unprofitable
Centrelink
A business is unprofitable if the income received is less than or equal to the amount it cost to earn that income, i.e. breaking even or operating at a loss.
Unrealisable Asset
Centrelink
For the purpose of applying the hardship provisions, an asset is unrealisable if the person cannot sell or realise it or use it as security for borrowing.
Unsecured Loan
Property
A loan that is not backed up by collateral.
Unskilled Work
Centrelink
Work not needing any special skill or training.
Unskilled Worker
Centrelink
A worker without special skills or training, as opposed to a (skilled) tradesman.
Urgent Payment
Centrelink
Part of a person's current income support payment that is paid before the usual payday. Payment will only be made if there is no suitable alternative assistance available. The person must provide proof of financial hardship due to exceptional and unforeseen circumstances.
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V
Valuable Consideration
Centrelink
The receipt of goods, services or some other benefit in exchange for some item, action or promise.
Valuation
Property
A written analysis of the estimated value of a property prepared by a qualified valuer.
Value of Free Board/Lodging
Centrelink
The amount that free board or lodging is worth to the recipient. Centrelink may consider this, or part of it, as income, particularly when it can be seen as 'valuable consideration'.
Value Style
Financial Planning
A value investor seeks to invest in assets that are underpriced on the expectation prices will increase. With shares, the key ratio to judge whether stocks are underpriced or not is their relative price/earnings ratio.
Variable Expenses
Financial Planning
Expenses that are not fixed, and can change.
Variable Interest Rate
Loans
Where interest is paid (received) at a variable rate over the term of a loan (investment).
Vendor
Property
The seller.
Vendor Statement
Property
(Victoria only) Also called the Section 32 Certificate of the Sale of Land Act. Known as Contract of Sale in NSW. A statement by the vendor of the particulars of the property offered for sale. It must be signed by the purchaser before signing the Contract of Sale or Contract Note.
Veterans' Children Education Scheme
Centrelink
The child of a veteran who gets a Disability Pension may get an Education Allowance and other assistance from the Department of Veterans' Affairs.
Veterans' Supplement
Centrelink
A fortnightly payment paid to veterans and certain dependants, who are eligible cardholders.
Visa
Centrelink
Permission for a person to enter and remain in Australia either temporarily or permanently. Can be in the form of a label affixed to a person's passport, or more usually is electronically issued and is not visible.
Visitor's Visa
Centrelink
A document or electronic permit that allows people to travel to Australia for a holiday, visit family and/or friends, or undertake informal studies or training. A Visitor's Visa also allows business people to make a short business trip to Australia.
Volatility
Financial Planning
The extent to which total returns from an investment fluctuate over time.
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W
Waiting Period
Centrelink
A statutory period that has to be served before payment can commence. For example, a person may have a waiting period because they are a newly arrived resident, or their liquid assets exceed certain limits.
Waive
Centrelink
To forgo or put aside a legitimate right or claim: generally used in regards to overpayments, and where an eight week non payment period penalty is ended early due to commencement in a Compliance Activity (Serious failure only) or due to hardship provisions (Serious Failure or Unemployment Non-Payment period).
War-Caused Disability
Centrelink
A disability or illness that resulted from service in the armed forces during a time of war.
Ward of the State
Centrelink
A child who has been placed in the legal custody of the child welfare department of a state government.
Wealth Creation
Financial Planning
Involves the building of assets by means of careful investment into asset based investments, usually over a long period of time so as to achieve an income stream that will ensure a continuation of a high quality lifestyle in the years beyond retirement.
Welfare Payments
Centrelink
Any payments received from a government welfare agency or from a private welfare organisation such as St Vincent de Paul or the Smith Family.
Widow
Centrelink
A woman, whose partner has died.
Widow Allowance
Centrelink
An income support payment for women, born on or after 1 July 1955, who were widowed, divorced or separated since turning 40 years of age and who have no recent workforce experience.
Widow B Pension
Centrelink
From 20 March 1997, there are no new grants of Widow B Pension. Current recipients of this pension will continue to receive this until they are eligible for Age Pension.
Wife Pension
Centrelink
A payment to the female partner of an aged or disability support pensioner. There have been no new grants since 1 June 1995.
Will
Estate
A will is a legal document often prepared with the assistance of a solicitor and properly witnessed. It is designed to give effect to a person's wishes for the disposal of their possessions after their death. A will requires regular updating during a person's lifetime and includes the appointment of an executor to attend to the administration of the will.
Withdraw
Centrelink
To take out money from an account.
Withdrawal Form
Centrelink
An official form used to make a withdrawal from an account.
Withholding
Centrelink
An amount may be deducted from a customer's usual fortnightly payment to recover an overpayment or debt. It is based on a set percentage of a payment received by a customer, or a reduced figure agreed upon because of financial hardship.
Work Bonus
Centrelink
A concession that allows pensioners over age pension age to keep more of their earnings.
Work For The Dole
Centrelink
Offers eligible job seekers work experience opportunities in projects of value to local communities.
Work History
Centrelink
An account of the claimant's previous work including self-employment, voluntary work, the reasons for leaving work and any hobbies or interests.
Work Permit
Centrelink
People without permanent residence status require a work permit to obtain a paid job.
Work Release
Centrelink
A program that allows eligible prison inmates to leave the prison each day to work and earn income, and then returns to the prison at night.
Workers Compensation
Centrelink
A system of insurance (often compulsory) where an employee may claim compensation from an employer (or from the employer's insurance company) for an injury or illness sustained at, or as a result of, work.
Working Age
Centrelink
The age where people can undertake employment. Generally from 15 to 65 years.
Working Credit
Centrelink
Available to most people below age pension age who receive income support. Encourages people to take up paid work by allowing them to keep more of their payments when they start work.
Working-Life Residence
Centrelink
Australian residence, generally between the ages of 16 and age pension age. Under some international social security agreements the ages for the start and finish of a period of working life residence may vary from this.
Workplace Modifications Scheme
Centrelink
Enables the reimbursement to employment agencies or employers for the costs of necessary workplace modifications when employing people with disabilities.
Work-Related Disability/illness
Centrelink
An accident or an illness, which may have taken place at work, for example, exposure to chemicals. If the person is unable to work because of an illness or condition, a customer can be required to claim compensation.
Write Off A Debt
Centrelink
To stop recovery action on an overpayment. It does not affect Centrelink's right to take recovery action at a later stage. Not to be confused with waive.
Written Authority
Centrelink
Permission or delegated power given in writing.
Written-Down Value
Centrelink
The original cost of an asset, minus the total depreciation claimed to date.
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X
X (as signature)
Legal
A notation made by an individual who has not learned to write or physically unable to write, to show intent to sign an instrument such as a deed or will. In regard to the conveyance of real property, such a person would be required to make such a mark or at least a thumbprint as intent to sign and have it witnessed.
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Y
Yield
Investment
The interest earned or return by an investor on an investment, stated as a percentage of the amount invested.
Youth Allowance
Centrelink
An income support payment for students, trainees and Australian Apprentices generally aged between 16 and 25 years, or job seekers generally aged between 16 and 20 years.
Youth Connections
Centrelink
Assists young people aged 13 to 19 who are at risk of not completing Year 12 or its equivalent.
Youth Disability Supplement
Centrelink
An income supplement paid to young people with disabilities in recognition of the extra costs associated with having physical, intellectual or psychiatric disability.