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Equities |
Another word for shares. A Share is a share in the
ownership of a company. |
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Franking
Credits |
See Imputation |
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Imputation |
Dividend imputation, imputation and franking credits all mean that
investing in shares of companies which pay Australian tax can reduce
your tax bill. The system is complicated and there are unit trusts
called imputation trusts which invest to get maximum tax credits.
Most investments with Australian shares earn some tax credit, though
it may be passed on as higher investment earnings. |
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Insurance
Bond |
A type of investment run by insurance companies which carry some
tax benefits. After 10 years earnings are tax free. Most offer documents
for insurance bonds explain the benefits quite well. |
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Master Trust |
A type of unit trust which lets you invest in many different types of
investments.
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Rollover |
A payment from a superannuation fund which has to be put into a
superannuation fund. There is now little difference between a rollover
fund, ADF or superannuation fund. |
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Superannuation |
A tax advantaged way of saving for retirement. |
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Unit |
Unit is often used to mean the pieces of an investment which you
own. If thousands of people invest in a super fund, unit trust or
insurance bond each owns part of the investments. The amount which
each person owns is the total value of all their units. As the
investments change in value the units also change in value. Units
allow people to buy and sell investments in a way that is fair to everyone. |
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Unit Trust |
A form of investing or saving where all the tax and earnings are
passed on to investors. Unit trusts can be found which invest in
almost anything. Their main advantages are that you can generally
get your money back quickly if you need it, they make it easy to invest
in shares, property and a wide range of other assets, your money is
professionally managed and you receive regular statements.
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Planning Home Page