Glossary

ATO term - A tax on consumer spending. The tax is placed on a product or service when there is value added at the stage of production or at the final sale to the consumer. Each business in the supply chain charges VAT on their sales and is entitled to a refund of VAT paid on their inputs or purchases. Australia's GST is a value added tax on goods and services for domestic consumption.

Where consumers receive interest on an investment or pay interest on a loan at a rate that may go up or down during the term.

A home loan where payments increase or decrease in line with rises or falls in official cash rates. Opposite of fixed rate home loan.

Call made by the clearing house for additional funds or eligible security to be lodged to cover an unfavourable movement in the price of futures, options or exchange traded CFDs.

Where the seller of a house or other asset, such as a car, offers to lend you money to buy the property or asset as part of the sale.

The extent to which the return on an asset fluctuates over time. It is measured by the rate at which the price of a security moves up and down. The higher the frequency of movement in the price of a security, the higher the volatility and the greater the risk.

An insolvency procedure where a financially troubled company appoints a registered liquidator (called a 'voluntary administrator'). The appointment can be made by the directors, a liquidator or provisional liquidator of the company, or a secured creditor that holds a security interest in the whole, or substantially the whole, of the company's assets.

A registered liquidator appointed to carry out the voluntary administration of a company. The role of the voluntary administrator is to take control of the company, investigate the company's affairs, report to creditors and recommend to creditors whether the company should enter into a deed of company arrangement, go into liquidation or be returned to the directors.

Volume weighted average price.