Using someone else's personal details in order to steal money or gain other benefits by pretending to be that person.
Tax credit passed on to shareholders who receive partially or fully franked dividends. The tax credit is in consideration of the tax the company has paid on its profits before passing those profits on to shareholders.
Everything you get for your regular monthly payment under a mobile phone plan – e.g. allowances for calls, data.
income producing asset
Any asset that generates an income. For example, dividends are paid on shares, investment properties generate rental income, bonds and bank accounts produce interest.
income protection insurance
Provides you with an income if you can’t work because of illness or injury. Most policies offer cover for up to 75% of gross wages for a specified number of years.
Measures the changes in value of a market or various sectors of a market. For example, the Australian All Ordinaries Index measures the change in the overall value of shares listed on that market.
A fund that aims to match the investment performance of a selected index.
A superannuation fund that originally catered to workers from a particular employment industry or industrial award. Most are now open to the general public. They are usually low cost, have limited investment options and return profits to members.
A written legal agreement that sets out what is being insured and for how much.
Money charged by an insurance company for coverage.
The increase in the cost of goods and services over time.
international data pack
A special deal that gives you better value when you use your mobile phone overseas.
initial public offering (IPO)
Payment for the use of money over time. You earn interest by lending your money. If you borrow money, interest is the amount you pay to borrow the money. The rate of interest can be fixed or variable. It is usually calculated as a percentage of the amount lent or borrowed. For example on a $10,000 car loan that has an interest rate of 10%, you would pay $1000 interest in the first year.
Allows you to buy goods or services now and pay for them later. You don't have to pay interest for a set period. You are usually required to make regular repayments during the interest-free period. Any money outstanding at the end of the interest-free period will incur interest, often at a very high rate.
interest-free period on credit cards
The days where you don’t have to pay interest on your credit card purchases. Interest-free periods usually start on the first day of your billing cycle, not when you make a purchase.
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.
interest-only home loan
Where only the interest is paid on a loan for a specified period. No principal repayments are required during that time.
Dying without leaving a will. Your assets will be distributed according to intestacy laws in the relevant state or territory.
An asset bought with the aim of producing an income and/or an increase in value over time.
Making a conscious decision about how your money will be invested.
Individual or organisation responsible for investing and managing the assets of others. See also fund manager or responsible entity.
An administrative system for your investments. Platforms offer a range of investments and services, all in the one place. Reporting for all investments is usually in the one report.