Unit vocabulary

Every term taught in the unit, lesson by lesson, with the photos and diagrams the lessons use to show them.

income Money a person receives, for example from working
wage Pay worked out as hours worked × hourly rate also Lesson 2
hourly rate The amount paid for each hour of work also Lesson 2
salary A set amount of pay for a year, paid in equal parts (for example weekly or monthly)
per annum (p.a.) Per year also Lesson 3
commission Pay that is a percentage of the value of what a person sells
retainer A set amount paid each week on top of commission, whatever the sales
piecework Pay for each item produced or each task completed
royalty A payment to the creator of a book, song or other work each time it is sold or used

Photo credits:

wage: "Barista making coffee", rawpixel, CC0 1.0. https://www.rawpixel.com/image/5904500/photo-image-public-domain-person-kitchen
salary: "Irene's office, across the asile [sic] from me" by wbaiv, CC BY-SA 2.0. https://www.flickr.com/photos/9998127@N06/5833123954
commission: "House For Sale, Real Estate SOLD sign" by myguys.nova, CC BY 2.0. https://www.flickr.com/photos/124808053@N07/14683431173
piecework: "Aunties Lay Leong, Susan and Julie with buckets of cherries" by avlxyz, CC BY-SA 2.0. https://www.flickr.com/photos/10559879@N00/2079822283
royalty: "Books" by NeilGHamilton, CC BY 2.0. https://www.flickr.com/photos/34800120@N08/6819921489

shift One block of hours worked in a day
overtime Hours worked beyond a worker's normal hours, usually paid at a higher rate
penalty rate A higher rate paid for working at times such as weekends, public holidays or late at night
multiplier The number the base rate is multiplied by, for example × 1.5 or × 2
time and a half Base rate × 1.5
double time Base rate × 2
public holiday An official holiday, for example Christmas Day, when penalty rates usually apply
pay guide A Fair Work Ombudsman summary of the minimum pay rates in an award

gross pay Pay before any tax is taken out
net pay (take-home pay) Pay left after tax and other deductions are taken out
fortnight Two weeks
PAYG withholding Pay As You Go: the employer takes some tax out of each pay and sends it to the ATO
tax withheld The amount of tax taken out of one pay
tax-free threshold For most Australian residents, the first $18,200 of yearly income, on which no income tax is paid. Claiming it means less tax is taken out of each pay
annual leave Paid time off work. Full-time and part-time employees get 4 weeks a year, but casual employees do not
leave loading An extra payment during annual leave, worked out as a percentage of normal pay (17.5% in the General Retail Industry Award)

Photo credits:

Tax table: extract from NAT 1005 (Australian Taxation Office, 2026a), with the $575 row highlighted. The ATO allows its material to be copied and adapted.
annual leave: "Sun loungers" by Ed.ward, CC BY-SA 2.0. https://www.flickr.com/photos/44423341@N00/5478649673

principal (P) The original amount invested. For Ella, P = $1000.
simple interest (I) Interest calculated on the original principal for the whole stated period.
interest rate (r) Interest per period as a proportion of the principal. 5% p.a. is r = 0.05 per year.
per annum (p.a.) Per year. Match n to years when the rate is annual.
time (n) The number of periods for the quoted rate. With an annual rate, 18 months is n = 1.5 years.
total amount (A) The principal plus accumulated interest: A = P + I.

unknown quantity A value not yet given, such as r or n.
substitute Replace a symbol with its known value, using compatible units.
inverse operation An operation that undoes another. Division undoes multiplication.
verify Substitute the solution into the original rule to check it gives the stated interest.
coordinate (n, A) An ordered pair giving time first and total amount second.
linear relationship A relationship with a constant change in amount for equal changes in time. Its graph is a straight line.

initial value The amount when n = 0. For an amount graph, it is the principal P.
gradient / rate of change Change in amount divided by change in time. With n in years, the unit is dollars per year.
linear The amount changes by equal increments for equal time intervals, so the graph is a straight line.
coefficient of n The number multiplying n. In A = 2000 + 120n, 120 is the yearly dollar increase Pr.
representation A way to show a relationship, such as a rule, table or graph.
annual percentage rate The yearly interest as a percentage of the principal. It differs from the dollar increase Pr.

cash price Price paid for the item outright.
deposit Initial amount paid before the later repayments.
instalment / repayment One scheduled payment.
duration How long the payment plan lasts.
repayment total Sum of the scheduled repayments, excluding the initial deposit in these offers.
total paid Deposit plus all repayments and any separately stated charges.
additional cost Total paid minus cash price.
affordability Whether a person can meet payments while covering other needs and commitments.

BNPL A payment arrangement that divides a purchase into scheduled payments.
interest-free No interest is charged under the stated conditions; other charges may still apply.
account charge A separately stated charge for the payment arrangement.
late fee An additional charge when a specified payment is late.
payment schedule The dates and amounts of required payments.
conditional total Total for a stated scenario, such as exactly one late payment.

principal Original amount borrowed in these offers.
establishment fee One-off charge for setting up the loan.
fee basis The amount on which a percentage fee is calculated.
loan term Time over which the loan is repaid.
total repaid All payments returned to the lender, including stated charges.
borrowing cost Total repaid minus the amount borrowed.
repayment ceiling A stated maximum payment; it does not by itself establish affordability.