Industry glossary
Terms you will meet in the documents, systems and scenarios.
Activity statement
The periodic return lodged with the tax office to report and pay goods and services tax, pay as you go withholding and instalments, and to claim fuel tax credits.
Reconciliation
The process of matching the balance in an account to an independent source such as a bank statement and explaining any difference.
Subsidiary ledger
A detailed ledger, such as accounts receivable or accounts payable, whose total must agree with the control account in the general ledger.
Preliminary assessment
The broker's documented assessment, made before credit assistance is given, that a loan is not unsuitable for the client.
Best interests duty
The legal obligation on mortgage brokers to act in the best interests of the client and to prioritise the client's interests over their own.
Serviceability
A borrower's capacity to meet loan repayments, assessed at a buffered interest rate after verified income and expenses.
Excess
The amount the insured pays towards each claim before the insurer pays the balance.
Beneficial owner
An individual who ultimately owns or controls 25 per cent or more of a company or trust, who must be identified under anti-money laundering law.
Superannuation guarantee
The minimum superannuation contribution an employer must pay for each eligible employee, calculated on ordinary time earnings and paid by the quarterly due date.
Internal dispute resolution
The firm's own process for receiving, investigating and responding to complaints before a complainant goes to the external dispute resolution scheme.