FINANCIAL PLANNING ACRONYMS
SOA – Statement of advice
Outlines the recommendations being made by a financial planner
ROA – Record of advice
Similar to a SOA, but much less detailed and comprehensive
FSG – Financial Services Guide
A document that outlines available services and products. It explains adviser remuneration, and lists internal and external complaint handling procedures
AFSL – Australian Financial Services License
Required licensing for a financial services firm to conduct business
FPA – Financial Planning Association
Financial Planning Association
CFP – Certified Financial Planner
Highest level of certification an Australian financial planner can achieve
DFP – Diploma, Financial Planning
Signifies that a planner has a tertiary qualification in financial planning
INVESTMENTS
CPI – Consumer Price Index
Measures inflation i.e. the changes in the price of goods and services
ASX – Australian Stock Exchange
Electronic exchange where shares and other Australian securities are traded
RBA – Reserve Bank of Australia
The Australian Central Bank – maintains the financial system and issues banknotes
ASIC – Australian Securities & Investment Commission
Australia’s corporate, markets, and financial services regulator
GFC – Global Financial Crisis
The financial crisis that peaked globally in 2008
APRA – Australian Prudential Regulation Authority
The regulatory body that oversees the banking, credit unions, insurance, and super industries
ATO – Australian Taxation Office
Taxation authority
P/E – Price / Earnings Ratio
A company’s market value per share.
SUPERANNUATION
SGC – Superannuation guarantee
Superannuation guarantee contributions are compulsory contributions made by your employer to your nominated superannuation fund.
ABP – Account-based Pension
An income stream, funded by money in your super that is accessible after reaching preservation age.
TTR – Transitions to Retirement (pension)
A policy that allows you to keep working while also accessing some of your super benefits
SMSF – Self-Managed Super Fund
A private super fund that you manage yourself
LITO – Low Income Tax Offset
Tax offset available to low income taxpayers
CC – Concessional contribution (pre-tax)
Pre-tax contributions made to super account (e.g. salary sacrifice, employer contributions)
NCC – Non-concessional contribution (after tax)
Super contributions on which tax deductions have not been claimed
Co-Co – Government Co-Contribution
For low- and middle- income earners who make an after-tax super contribution, the government will automatically make an additional contribution
LRBA – Limited Recourse Borrowing Arrangement
The borrowing of money to purchase a single asset, like property, for your super.
CENTRELINK
CRN – Customer Reference Number
A personal identifying number used for Centrelink purposes
APA – Age Pension Age
The age at which you qualify for age pension
CLK – Centrelink
Welfare system delivering payments and services to those in need
CSHC – Commonwealth Seniors Health Card
Provides seniors with access to cheaper prescriptions and medical services, as well as other government concessions.
FTB-A – Family Tax Benefit – Part A
Provides assistance to families and is paid per-child
FTB-B – Family Tax Benefit – Part B
Provides assistance to single parents, non-parent carers (e.g. grandparents), and couples with one main income
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