| IMPROVED
VALUE |
|
The value of land, allowing for the value of the buildings erected
on it (contrast "site value"). |
|
| IMPROVEMENTS |
|
The buildings erected on land, as distinct from the land itself.
|
|
| INCOME
TAX |
|
A government charge on earnings. |
|
| INCOME
TEST |
|
A criterion, the level of income each week, which is applied
in order to deter mine eligibility for social security pen sions
and benefits. |
|
| INDUSTRIAL
PROPERTY |
|
Warehouses
and factories. |
|
| INFLATION |
|
The
state of affairs when the value of money falls and the prices
of goods and services increase, other things being equal.
|
|
| INPUT
TAX CREDITS (GST) |
|
The
goods and services tax paid on their CREDITS (GST) inputs by
suppliers of goods and services which those suppliers are able
to claim back by way of tax refund. Such claims can be made
in respect of both taxable and GST?free activities. However,
input tax credits are not allowed for the GST paid by businesses
on inputs used in ac tivities that are input taxed. Nor are
input tax credits allowed for GST paid on goods and services
for the personal use of proprietors. |
|
| INPUT
TAXED (GST) |
|
Goods
and services which are only partly exempt from the goods and
services tax because, while that tax is not payable directly
by consumers, the suppliers of those goods and services are
not able to claim back the tax paid on their inputs and thus
have to reflect that in their price structure.
Examples
include financial services and residential rents. Other countries
use the term "exempt" to describe this type of activity. Contrast
GST-free.
|
|
| INTEREST
|
|
The
periodical payment by a borrower to a lender for the use of
money. See also compound interest, simple interest, yield |
|
| INTEREST
COVER |
|
The
number of times that the rent net of expenses but before deducting
interest and tax cover the interest. It is one measure of the
security of the interest payments. |
|
| INTERNAL
RATE OF RETURN (IRR) |
|
The
interest rate which equates the present value of the amounts
invested in a project with the present value of the ex pected
future cash flows. It is a measure of the return from an investment.
|
|
| INVESTMENT
ADVISER |
|
A
person or company licensed as such un der Chapter 7 of the Corporations
Law. |
|
| INVESTMENT |
|
An
act of immediate sacrifice in the ex pectation of future reward;
the exchange of money for some income earning and/or appreciating
asset in order to gain a future return. An investment entails
risk. A wide range of assets from coins and art to property
and shares can be pur chased as investments. |
|
| IRR |
|
Internal
rate of return. |
|
