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