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Financial Planning Acronyms

Have you ever met a FP who presented an SOA that suggested you should do a NCC to your SMSF, establish an LRBA, so you can avoid giving money to the ATO with the aim of generating a return above CPI?


We certainly hope it didn’t come from our office because we like to KISS.  Unfortunately, the Financial Planning industry has a bad habit of littering the world with acronyms.  We hope you can use the below table to help MSOIA (make sense of it all).


We will periodically update this list, so let us know if there are any other acronyms you’d like us to explain!


CPIConsumer Price IndexMeasures inflation i.e. the changes in the price of goods and services
ASXAustralian Stock ExchangeElectronic exchange where shares and other Australian securities are traded
RBAReserve Bank of AustraliaThe Australian Central Bank – maintains the financial system and issues banknotes
ASICAustralian Securities & Investment CommissionAustralia’s corporate, markets, and financial services regulator
GFCGlobal Financial CrisisThe financial crisis that peaked globally in 2008
APRAAustralian Prudential Regulation AuthorityThe regulatory body that oversees the banking, credit unions, insurance, and super industries
ATOAustralian Taxation OfficeTaxation authority
P/EPrice / Earnings RatioA company’s market value per share.
SGSuperannuation guaranteeAct requiring employers to pay a minimum percentage into their employees’ superannuation.
ABPAccount-based PensionAn income stream, funded by money in your super that is accessible after reaching preservation age.
TTRTransitions to Retirement (pension)A policy that allows you to keep working while also accessing some of your super benefits
SMSFSelf-Managed Super FundA private super fund that you manage yourself
LITOLow Income Tax OffsetTax offset available to low income taxpayers
CCConcessional contribution (pre-tax)Pre-tax contributions made to super account (e.g. salary sacrifice, employer contributions)
NCCNon-concessional contribution (after tax)Super contributions on which tax deductions have not been claimed
Co-CoGovernment Co-ContributionFor low- and middle- income earners who make an after-tax super contribution, the government will automatically make an additional contribution
LRBALimited Recourse Borrowing ArrangementThe borrowing of money to purchase a single asset, like property, for your super.
CRNCustomer Reference NumberA personal identifying number used for Centrelink purposes
APAAge Pension AgeThe age at which you qualify for age pension
CLKCentrelinkWelfare system delivering payments and services to those in need
CSHCCommonwealth Seniors Health CardProvides seniors with access to cheaper prescriptions and medical services, as well as other government concessions.
FTB-AFamily Tax Benefit – Part AProvides assistance to families and is paid per-child
FTB-BFamily Tax Benefit – Part BProvides assistance to single parents, non-parent carers (e.g. grandparents), and couples with one main income
Financial Planning
SOAStatement of AdviceOutlines the recommendations being made by a financial planner
ROARecord of AdviceSimilar to a SOA, but much less detailed and comprehensive
FSGFinancial Services GuideDocument that outlines available services and products. It explains adviser remuneration, and lists internal and external complaint handling procedures
AFSLAustralian Financial Services LicenseRequired licensing for a financial services firm to conduct business
FPAFinancial Planning AssociationFinancial planning regulatory body
CFPCertified Financial PlannerHighest level of certification an Australian financial planner can achieve
DFPDiploma, Financial PlanningSignifies that a planner has a tertiary qualification in financial planning
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