- Account-based pension
- An income stream paid from your super. You choose how much to draw each year, above a minimum set by the government.
- AFCA (Australian Financial Complaints Authority)
- A free, independent service for resolving complaints about financial firms, including financial advisers.
- AFSL (Australian Financial Services Licence)
- The licence a business needs to give financial product advice. Advisers either hold one or act for a business that does (as an authorised representative).
- Age Pension
- A government payment for people who meet age, residency, income and assets rules.
- Assets test
- How Centrelink reduces your pension based on what you own. Your home isn’t counted.
- A person or business authorised to give financial advice on behalf of a licence holder (AFSL).
- Basic daily fee
- A daily fee in residential aged care for everyday living costs such as meals and laundry.
- Concessional contributions
- Before-tax super contributions, such as your employer’s contributions and salary sacrifice. They’re capped each year.
- DAP (Daily Accommodation Payment)
- Paying an aged care room price as a daily amount instead of a lump sum.
- Deeming
- Centrelink assumes your financial investments earn a set rate, whatever they actually earn.
- Drawdown
- The money you take out of your super or savings each year to live on.
- Enduring power of attorney
- A legal document that lets someone you trust make financial decisions for you if you can’t.
- FSG (Financial Services Guide)
- A document explaining who we are, what we do and how we’re paid.
- Income test
- How Centrelink reduces your pension based on your income, including deemed income from investments.
- Means test
- Rules that reduce a government payment based on your income and assets.
- MPIR (Maximum Permissible Interest Rate)
- The government-set interest rate used to convert a lump-sum aged care room price into a daily payment.
- Non-concessional contributions
- After-tax super contributions. They’re capped each year too.
- Ongoing fee arrangement
- An agreement to pay for ongoing advice, which you renew each year and can end at any time.
- Preservation age
- The age you can generally access super once you retire. It’s 60 for anyone born after 30 June 1964.
- RAD (Refundable Accommodation Deposit)
- A lump-sum payment for an aged care room. It’s refundable, subject to the rules.
- Real return
- An investment return after taking away inflation. Our calculators use real returns so results are in today’s dollars.
- ASFA Retirement Standard
- Budgets published by the Association of Superannuation Funds of Australia for a modest or comfortable retirement.
- Salary sacrifice
- Asking your employer to pay part of your pre-tax salary into super. It counts as a concessional contribution.
- SMSF
- Self-managed super fund. A private super fund that you run yourself, with up to six members.
- SOA (Statement of Advice)
- The written document setting out personal advice, the reasons for it and what it costs.
- Single-issue advice
- Written advice on one topic, such as super contributions or the Age Pension, rather than a full plan.
- TMD (Target Market Determination)
- A document describing who a financial product is designed for.
- TPD (Total and Permanent Disability) insurance
- Insurance that pays a lump sum if you can never work again because of illness or injury.
- TTR (Transition to retirement)
- Drawing income from super while still working.
- Work Bonus
- An amount of income from work each fortnight that isn’t counted under the Age Pension income test.
Not sure where to start?
A 15-minute call, by phone or video, is the easiest first step. We’ll listen, answer your questions and tell you honestly whether we can help. The first meeting can be in person at our Subiaco office, or by phone or video.