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salary sacrificing

When you and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation. This can be a tax-effective strategy and usually suits middle to higher income earners.

scam

A trick designed to cheat you of your money.

secondary card

An additional credit card given to a person you have nominated where any money they spend will be borrowings against your credit card account. You are liable for transactions on both cards.

secured loan

A loan that is backed by an asset. The lender may sell the secured asset to get its money back if you cannot repay the loan. Opposite of unsecured loan.

security

In relation to financial assets, a security is an investment such as shares or bonds which can be traded in financial markets.

security for a loan

An asset that is put up to guarantee a loan. If the loan is not repaid, the lender may sell the asset to get its money back. See also mortgage.

self-managed super fund (SMSF)

A private super fund you can manage yourself. SMSFs are regulated by the Australian Taxation Office and can have one to four members. All members must be trustees to ensure they are fully involved in the decision-making of the fund.

share

A share is part ownership of a company. Shares are also known as equities or stocks. Shareholders are entitled to dividends which represent their portion of the company's profits.

short selling

The practice of selling a security or commodity that you do not own. You borrow the commodity or security from a third party (usually a broker) and immediately sell it to a buyer. You then buy identical securities back at a later date, to return to the lender. This is a speculative investment, made when you believe the price of the security is going to fall and therefore you will make a profit.

SOA

See statement of advice.

stamp duty

A state tax imposed on certain transactions, such as car registrations, mortgages and property transfers.

stapled securities

When two or more securities are contractually bound together so that they cannot be bought or sold separately.

statement of advice (SOA)

A document that sets out the advice given to a consumer by their licensed financial planner or adviser. It must include the basis on which the advice is given, details of the providing entity, and information on any payments or benefits the adviser or licensee will receive.

statutory warranty

A guarantee required under law that says traders and manufacturers must ensure their products are suitable for the purpose for which they are supplied.

stocks

See shares.

store card

A form of credit card offered by large retailers. Store cards are used like regular credit cards but usually charge much higher interest rates.

strata levy

A fee paid by property owners for the management of the common property of buildings established under a strata title.

strata title

A building, flats or units divided into blocks, each of which has a title and common property that is part of the land and building in the strata plan.

superannuation (super)

Money that you and your employers put into a special fund during your working life to provide you with money to live on when you retire.

superannuation guarantee (SG)

The minimum amount that your employer must pay into your superannuation fund. It is currently 9.25% of your gross salary.

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