FINANCIAL PLANNING ACRONYMS

SOA - Statement of advice

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Outlines the recommendations being made by a financial planner

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ROA - Record of advice

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Similar to a SOA, but much less detailed and comprehensive

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FSG - Financial Services Guide

A document that outlines available services and products. It explains adviser remuneration, and lists internal and external complaint handling procedures

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AFSL - Australian Financial Services License

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Required licensing for a financial services firm to conduct business

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FPA - Financial Planning Association

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Financial Planning Association

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CFP - Certified Financial Planner

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Highest level of certification an Australian financial planner can achieve

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DFP - Diploma, Financial Planning

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Signifies that a planner has a tertiary qualification in financial planning

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investments

CPI - Consumer Price Index

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Measures inflation i.e. the changes in the price of goods and services

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ASX - Australian Stock Exchange

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Electronic exchange where shares and other Australian securities are traded

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RBA - Reserve Bank of Australia

The Australian Central Bank – maintains the financial system and issues banknotes

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ASIC - Australian Securities & Investment Commission

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Australia’s corporate, markets, and financial services regulator

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GFC - Global Financial Crisis

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The financial crisis that peaked globally in 2008

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APRA - Australian Prudential Regulation Authority

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The regulatory body that oversees the banking, credit unions, insurance, and super industries

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ATO - Australian Taxation Office

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Taxation authority

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P/E - Price / Earnings Ratio

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A company’s market value per share.

Superannuation

SGC - Superannuation guarantee

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Superannuation guarantee contributions are compulsory contributions made by your employer to your nominated superannuation fund.

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ABP - Account-based Pension

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An income stream, funded by money in your super that is accessible after reaching preservation age.

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TTR - Transitions to Retirement (pension)

A policy that allows you to keep working while also accessing some of your super benefits

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SMSF - Self-Managed Super Fund

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A private super fund that you manage yourself

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LITO - Low Income Tax Offset

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Tax offset available to low income taxpayers

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CC - Concessional contribution (pre-tax)

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Pre-tax contributions made to super account (e.g. salary sacrifice, employer contributions)

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NCC - Non-concessional contribution (after tax)

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Super contributions on which tax deductions have not been claimed

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Co-Co - Government Co-Contribution

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For low- and middle- income earners who make an after-tax super contribution, the government will automatically make an additional contribution

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LRBA - Limited Recourse Borrowing Arrangement

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The borrowing of money to purchase a single asset, like property, for your super.

CENTRELINK

CRN - Customer Reference Number

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A personal identifying number used for Centrelink purposes

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APA - Age Pension Age

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The age at which you qualify for age pension

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CLK - Centrelink

Welfare system delivering payments and services to those in need

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CSHC - Commonwealth Seniors Health Card

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Provides seniors with access to cheaper prescriptions and medical services, as well as other government concessions.

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FTB-A - Family Tax Benefit – Part A

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Provides assistance to families and is paid per-child

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FTB-B - Family Tax Benefit – Part B

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Provides assistance to single parents, non-parent carers (e.g. grandparents), and couples with one main income