Understanding Car Expenses, Insurance, and Financial Terms
CAR EXPENSES:
For one-off expenses, such as purchase price, stamp duty & transfer of registration fee (where applicable). For annual & ongoing expenses, including registration, compulsory car insurance, optional car insurance, loan repayments (if applicable), fuel, parking, car maintenance, & car servicing (for periods not covered by warranty if applicable). If there is an accident involving your car, you could have to pay for the costs resulting from injuries to yourself/others, damage to your car/other vehicles, and damage to any property you hit.
Types of Car Insurance:
- Third-Party Property: Covers damage caused by your car to other people’s property, as well as your own legal costs.
- Third-Party Property, Fire and Theft: Covers damage caused by your car to other people’s property, and limited cover for loss or damage caused to your car due to theft or fire.
- Comprehensive: Gives you the most cover but is also the most expensive type. Covers damage to your car and damage to other people’s property if your car is in an accident, including fire. Also covers theft.
Financial Terms:
Stamp Duty: Car buyers must pay stamp duty whenever they buy a new or used car. The amount changes based on the type of car, but it is roughly around 3% of the total cost. Motor Vehicle Tax: This tax is paid for by owners of all registered vehicles. The amount is paid for each year through your car registration fees. The amount differs depending on where you live, and the type of car you own. Luxury Car Tax: This tax only applies when you purchase a car through a dealership. The tax applies to any car with a purchase price over $64,132 (including stamp duty). The luxury car tax rate is 33%.
Financial Definitions:
- Income: Money received for work or through investments.
- Expense: An outflow of money to another person or business as a payment for a good or a service.
- Debt: A sum of money that is owed or due.
- Superannuation: A way of saving for retirement.
Work-Life Balance:
The amount of time you spend doing your job versus the amount of time you spend with loved ones or pursuing personal hobbies and interests. A good work-life balance means that you can be happy and productive at work and have time for yourself and your family.
Burnout:
When you are mentally and physically exhausted for extended periods of time. You often have a lack of interest in work, or even avoid attending work. Burnout can cause physical symptoms such as stomach pains, headaches, and sleep disturbances.
Types of Work:
Permanent Work: Employment with the promise of ongoing work. Casual Work: No guaranteed hours of work, not paid annual leave or sick/personal leave.
Industrial Awards:
Set by government bodies, outlining basic working conditions of specific industries.
Corporate Social Responsibility:
Refers to the way in which a business demonstrates commitment to their community beyond that imposed by laws.
Innovation:
Refers to changing or creating more effective processes, products, and ideas to increase the likelihood of business success.
Competitive Advantage:
Conditions that allow a business to generate more sales or higher profits than its competition.
Types of Competitive Advantage:
- Differentiation
- Price
- Continually innovating products and services
- People
- Marketing
Increasing Competitive Advantage:
Cost leadership, price strategy, social responsibility.
Importance of Increasing Competitive Advantage:
To meet changing consumer demands, achieve efficiencies, lower costs, improve profit margins, and avoid decline.