Glossary
Plain-English definitions of the Australian finance terms you'll meet in tax, investing, super and property.
Tax payable on the profit when you sell an investment for more than you paid. Held over 12 months and you get a 50% discount.
Earning interest on your interest. The reason small amounts invested early grow into large amounts later.
An extra 15% tax on concessional super contributions for individuals earning over $250,000.
A basket of shares or bonds that trades on the ASX like a single stock, giving you instant diversification at a low cost.
A scheme that lets first-home buyers save for a deposit inside super, taxed at concessional rates.
An interest-free government loan for university fees. Indexed each June, repaid via your tax return once you earn over the threshold.
The tax rate applied to your next dollar of income — not your average rate across all income.
When the costs of owning an investment (interest, expenses) exceed its income, and the loss reduces your taxable income.
An arrangement to take part of your pay as a super contribution instead of cash, reducing your income tax.
Australia's compulsory retirement savings system. Your employer pays a percentage of your salary into a super fund you control.