Glossary

ABN	The Australian Business Number (ABN) to enable businesses in Australia to deal with a range of government departments and agencies using a single identification number. The ABN is a public number which does not replace your tax file number.

Account manager	A person who is dedicated to looking after the needs of specific individuals and organisations.

ACN	Australian Company Number, issued to an entity when it registers as a company under corporations law.

ACPMA	The Australian Contract Professional Management Association.

ACS	The Australian Computer Society.

Agent	Anyone who finds you work, for a percentage of the money charged to the client.

AIG	The Australian Industry Group.

APSI	See ‘PSI’.

ARBN	Australian Registered Business Number. An ARBN is issued to an entity when it registers with ASIC other than as a company, for example, foreign companies and registrable Australian bodies.

ATO	The Australian Taxation Office, the Government’s principal revenue collection agency. Their role is to manage and shape tax, excise and superannuation systems that fund services for Australians.

Audit	In this context, an audit means in-depth analysis of business finances, expenses and income by the Australian Taxation Office (ATO). Often results in a reassessment of tax paid, and profit and loss.

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BAS	Business Activity Statement: a report that businesses have to provide every 3 months on their income, expenses, and GST collection and payments.

Buyback	See ‘Lease buyback’.

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Chartered Accountant	An accountant who has undergone additional training beyond the degree level. Chartered Accountants are required to meet ongoing training to maintain their status.

CMO	Contractor Management Outsourcing, a service provided by CXC Global that manages the financial and administration aspects of independent contractors on behalf of their employer.

Consultant	An independent individual who provides services and expertise to an organisation.

Contract	A written agreement that an organisation has with an individual or another business to provide services or products.

Contractor	An individual or business that provides agreed services or products under the terms of a contract.

CXC Global	Formerly Consultants Exchange, an organisation formed in 1992 by consultants to help other consultants receive better financial advice, enjoy more money in their pocket, and meet their statutory requirements.

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Day rate	The amount charged for a working day. May or may not include GST, and/or expenses.

Department of Immigration and Citizenship	The Australian Government Department that is responsible for all immigration matters.

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EFTPOS	Electronic Fund Transfer at Point Of Sale: a way of paying for items and services without using cash or credit card.

Expatriate	A person temporarily or permanently residing in a country and culture other than that of the person's upbringing or legal residence.

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457 Visa	The Subclass 457 Visa is for employers who would like to sponsor an overseas employee to work in Australia for between 3 months and 4 years.

FBT	Fringe Benefits Tax: a tax payable by employers who provide fringe benefits to their employees or to associates of their employees. This is the case whether or not the employer is the actual supplier of the benefit (for example, where the benefit is provided by an associate or under an arrangement with a third party).

Finance company	An organisation specialising in the provision of finance such as car leasing.

Financial planning	A process of planning the financial needs and abilities of an individual.

Fleet card	An EFTPOS card you use to pay for relevant expenses such as petrol and servicing, usually packaged within a fully maintained vehicle lease, such as a Novated Lease. In your initial quote, the lease company will estimate the cost of running the car over a year. They do this based on their experience in the past and the amount of kilometres you anticipate travelling. They then add these costs to the finance/lease cost and instruct CXC Global to deduct them from your pre-tax pay.

Forex	An abbreviation for Foreign Exchange, services that allow you to transfer and exchange money into different currencies and to different countries.

Fringe Benefits Tax	See FBT

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Graduate	Someone who has completed tertiary education, usually a degree.

GST	Goods and Services Tax: charged at 10% in Australia.

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Graduate	Someone who has completed tertiary education, usually a degree.

GST	Goods and Services Tax: charged at 10% in Australia.

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Health insurance	Insurance that provides payment of benefits for covered sicknesses or injuries. It is not compulsory in Australia, however there are tax penalties for those who do not take out cover if they earn above a threshold salary.

HR	Human Resources: either the process of managing staff and employees, or the department dedicated to that area.

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IT	Information Technology

ITCRA	The Information Technology Contract & Recruitment Association.

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Lease buyback

When you sell your existing vehicle to a leasing company and then lease it back off them.

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Managed business structure	Various ways of structuring your business in a way that provides a tax and take-home pay advantage.

Mobile	Mobile phone, the Australian name for a cell phone.

MyAgency	A secure online portal that allows recruitment agents to set-up and load details for contractors who are to be engaged with CXC Global. This application provides the ability to add new contractors, extend contracts, view and edit contracting details, create PDF contracts, track contractors’ timesheets and run extensive reports.

MyCXC	An online portal that allows contractors to access and update their personal and banking details, complete online forms such as OH&S, submit electronic timesheets and view payslips.

MyManager	An online portal that allows end clients to approve and keep an online record of contractor electronic timesheets.

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Novated lease	A car lease that you have your employer pay the costs of with your pre-tax income. This makes the costs of leasing and running the car tax deductible.

Needs analysis	An analysis of the needs of an individual, with a solution that reflects those individual circumstances.

NTAA	The National Tax and Accountants Association.

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Outsourced payroll

A service provided by CXC Global that allows organisations to outsource the management of their payroll needs.

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p.a.	Per annum, i.e. per year.

PAYG	Pay As You Go: a system used for paying instalments during the income year towards the expected income tax liability on employment income. The actual tax liability is worked out at the end of the income year when an annual income tax return is assessed.

Payroll	The sum of all financial records of salaries, wages, bonuses, and deductions.

Payslip	A record of payment made to an employee or contractor.

PING	Professional Independents Networking Globally: a network that can help you with visas, tax, accommodation, travel and more, if you plan to move, relocate or work overseas.

Procurement	The acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place for the direct benefit or use of corporations, or individuals.

Professional Indemnity	Professional indemnity insurance provides cover for claims brought against the policyholder due to their professional negligence.

PSI	Personal Services Income: A status where the ATO regards income earned as being earned by the individual providing the services themself, rather than any structure the person places in between themself and the entity that pays the tax on the income. There are several elements to the tests that determine PSI – including The Results Test, 80/20 rule and unrelated clients test. If you are deemed to earn PSI the amount of deductions you can claim may be limited, and your reporting obligations, such as a tax return, will be affected.

Pty Ltd	Proprietary Limited, otherwise known as Pty or Limited Company: a privately owned, registered business incorporated in Australia. Indicative of the limited personal liability the owners of a Pty Ltd business have over the operations of the business.

Public Liability	Insurance covering liability exposures of individuals and businesses for damage to property and injury to individuals.

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Real estate	A legal term for property in Australia.

RCSA	The Recruitment and Consulting Services Association.

Residual	The percentage of the total value of a car that remains to be paid at the end of a lease if you want to own the vehicle outright. You can also roll the lease forward and re-lease the car at its new value.

Resume	Also known as a Curriculum Vitae or CV. A document that outlines an individual’s background, skills and work history, so that prospective employers can determine their worthiness for employment.

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Salary packaging	The legal process of packaging a cash salary into a combination of cash and concessionally taxed benefits, to the net benefit of the employee or contractor.

Salary sacrifice	An arrangement where you agree to forego part of your future salary or wages in return for your employer providing benefits of a similar value.

Sole trader	An individual who runs the business alone, without partners or a company structure. The income of the business is treated as the individual's personal income

Superannuation	Also known as ‘Super’, money that is invested during a working life to help fund life after retirement. In Australia, the Superannuation Guarantee means a compulsory percentage of salary must be paid into government-approved super funds. It is currently 9% of salary and wages up to a maximum cap.

State	A defined area of Australia such as New South Wales, Queensland and Western Australia.

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Take home pay	The amount of money you receive after all your taxes, super and other costs have been paid.

Tax deduction	Legitimate expenses that can be deducted from your pay, increasing the amount of money you receive in your pocket.

Tax File Number	A unique number issued to individuals and organisations by the Australian Taxation Office to help identify you and allow administration of tax-related matters.

Tax liability	The amount of total tax due the ATO after any credits and before taking into account any advance payments (withholding, estimated payments, etc.) made by the taxpayer.

Tax return	A report filed with a national or local tax authority for determining the amount of tax paid and owed, usually consisting of forms completed by a taxpayer or their accountant.

Territory	An area of Australia such as the Northern Territory.

TFN	See ‘Tax File Number’.

Timesheet	A record, whether an actual piece of paper or in soft copy online, that tracks the time spent on specific tasks and projects.

Travel insurance	Insurance for emergencies abroad such as illness, baggage loss, accidental death/dismemberment. This policy often includes trip cancellation insurance.

Trust	A form of Australian business structure for which there is a trustee who holds assets for the benefit of another person known as the beneficiary.

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Vehicle leasing	An arrangement where a finance company pays for your choice of vehicle in full, and you repay them on a monthly basis at pre-agreed rates and terms.

Visa	Permission granted by a country to allow you to visit, holiday or work for a specified time. Some countries, such as Australia and New Zealand, have agreements in place that mean visas to visit are not required.

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Workers Compensation

Employer-paid insurance required by law that compensates employees who are injured on the job.

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