How to Speak Australian
Financial Planning > Tax Planning
By Bob Keane
July 01, 2009 at 04:00 AM Share & Print
The original version of this story was published on Investment Advisor
Anyone who's ever been to an Outback Steakhouse knows the difference between a Bloke and a Sheila, and probably that Foster's is Australian for beer. Below are a few more terms from our friends in the southern hemisphere.
The government regulatory body that enforces company and financial services laws to protect consumers, investors, and creditors.
Australian Taxation Office (ATO)
The government's principal revenue collection agency. Its role is to manage and shape tax, excise, and the superannuation systems.
Cooling-off Period
A period during which purchasers of a good or service have the opportunity of deciding not to proceed with a transaction. If this occurs then any money paid out for the transaction is refunded.
The amount of an insurance claim which the individual is required to pay before the insurer becomes liable to pay on the claim. This amount is specified in the insurance policy.
Interest Free Period
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.
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An investment that pools money from several investors and uses it to buy a particular type of investment.
Marginal Tax Rates (MTR)
Australia 's sliding income tax rates, ranging from 0% to 47% of an individual's salary.
Part of an individual's 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 taxable income).
Moneys that workers and their employers put aside in a fund during the working years to use upon retirement.
Superannuation Guarantee
A government requirement that employers pay a minimum amount, equivalent to a certain percentage of each employee's earnings, into a superannuation fund or retirement savings account.
Super Splitting
Moving part of a superannuation from one partner to be used to bolster a spouse's super fund account.
Source: FPA of Australia