Glossary

Energy terms cause most of the confusion on a household bill. These are the ones that affect what you actually pay, explained without the industry shorthand.

Embedded Network

An embedded network is a private electricity network where the building owner buys power in bulk and sells it on to residents. Apartment blocks, retirement villages and caravan parks commonly use them. Living in one usually means you can’t choose your own retailer, so the standard comparison options may not apply to you.

Feed-in Tariff

A feed-in tariff is the rate your retailer pays for electricity you export back into the grid, credited against your bill. Retailers set these rates themselves, so they vary from plan to plan. Our solar feed-in tariff guide covers how the credits get calculated.

Green Energy

Green energy is electricity generated from renewable sources like wind, solar and hydro. Most retailers sell it as a paid add-on to your standard plan. Accredited GreenPower goes further, with your retailer buying certified renewable generation on your behalf. Households can also generate their own through solar energy plans.

Kilowatt Hour (kWh)

A kilowatt hour (kWh) is the unit your electricity use gets measured and billed in. One kWh runs a 1,000 watt appliance for an hour, so an hour of a small heater or around ten hours of a fridge. Electricity rates are quoted in cents per kWh.

Smart Meter

A smart meter is a digital electricity meter that records your usage in 30 minute intervals and reports it to your retailer automatically. Because it tracks when you use power and not only how much, smart meters open up time of use plans with cheaper off-peak rates.

Solar Feed-in Tariff

A solar feed-in tariff is the credit you earn for exporting surplus power from your rooftop panels. Rates differ by state and by retailer, and a high export rate often sits alongside higher usage charges. Check the total annual cost rather than the headline number, then compare solar feed-in tariffs by state.

Solar Inverter

A solar inverter converts the direct current your panels produce into the alternating current your appliances and the grid can use. Without one, the system generates nothing usable. Two main setups exist, string inverters and microinverters, compared in our guide to solar inverter types.

Health cover language sits somewhere between tax and insurance, which is why so much of it goes unread. GoSwitch has set out the terms that decide what you pay.

Health Fund

A health fund is a registered private health insurer selling hospital and extras policies, separate from Medicare. Open funds accept anyone. Restricted funds only take members from certain employers or professions, such as defence or teaching. Compare health insurance companies before you join one.

Lifetime Health Cover (LHC) Loading

Lifetime Health Cover loading is a surcharge on hospital cover premiums for anyone taking out cover after the 1 July following their 31st birthday. It adds 2 percent for every year you were aged over 30, capped at 70 percent. Hold hospital cover for 10 continuous years, and the loading comes off. It never applies to extras policies.

Medicare Levy

The Medicare levy is a 2 percent charge on your taxable income that helps fund the public health system. The ATO collects it through your tax return, so it applies regardless of any private cover you hold. Low-income earners pay a reduced rate or nothing at all.

Medicare Levy Exemption

A Medicare levy exemption removes the levy entirely, based on your circumstances rather than your income. It covers people who aren’t eligible for Medicare benefits, some foreign residents, certain defence force members and holders of a Department of Veterans’ Affairs Gold Card.

Medicare Levy Surcharge (MLS)

The Medicare levy surcharge (MLS) is a separate charge on higher income earners who don’t hold private hospital cover. It applies across three income tiers, with the rate rising at each one. For some people, a basic policy costs less than the surcharge itself. Thresholds differ for singles and families, so start with health insurance for singles if you’re on your own.

Medicare Levy Threshold

The Medicare levy threshold is the income level below which you pay a reduced levy or none at all. The ATO sets it and adjusts the amounts each financial year. Separate thresholds apply to seniors, pensioners and families with dependent children.

Private Health Insurance

Private health insurance covers treatment costs Medicare doesn’t fully pay. Hospital policies cover you as a private patient. Extras policies cover services like dental, physiotherapy and optical, and combined policies do both. Premiums, waiting periods and exclusions vary by fund, so it pays to compare health insurance rather than renew by default.

Private Health Insurance Rebate

The private health insurance rebate is a government contribution toward your premiums. It’s income tested, so the percentage falls as income rises and cuts out above the top tier. Take it as a reduced premium or claim it back at tax time. Rates adjust every 1 April, with current figures on the health insurance government rebate page.

Waiting Period

A waiting period is the time between joining a fund and being able to claim. Standard limits run to two months for general hospital treatment and twelve months for pre-existing conditions and pregnancy. Periods you have already served carry across when you change funds, so switching health insurance doesn’t reset the clock.

Bandwidth

Bandwidth is the maximum amount of data your connection can carry at once, measured in Mbps. It sets the ceiling for how many devices can stream, game or video call at the same time without slowing each other down.

Broadband

Broadband is any always-on, high-speed internet connection, as distinct from old dial-up. In Australia, the term usually means the NBN, though fixed wireless and 5G home internet count too. Your available speed depends on the connection type at your address.

FTTP

FTTP stands for fibre to the premises, where fibre optic cable runs all the way into your building with no copper in the final stretch. It’s the fastest NBN connection type and supports the highest speed tiers. Some homes on older connection types can request an upgrade.

Good Internet Speed

A good internet speed depends on how many people share the connection and what they use it for. One or two people browsing and streaming manage on around 50 Mbps. A busy household of four wants 100 Mbps or more. Check the typical evening speed a provider quotes, because that’s when connections slow.

HFC (NBN)

HFC stands for hybrid fibre coaxial, an NBN connection that reuses the coaxial cable originally laid for pay TV. Fibre runs to a node in your street, then coax covers the last stretch to your home. It handles high speeds well, though nearby households share the capacity.

Latency

Latency is the delay between sending a request and getting a response, measured in milliseconds. Low latency matters for video calls, online gaming and anything live. It sits separately from speed, so a fast connection can still feel sluggish. Ping is how you measure it.

Mbps

Mbps stands for ‘megabits per second’, the unit internet speeds get sold in. Bits are smaller than bytes, so a 100 Mbps connection downloads at roughly 12 megabytes per second. A two-hour film in high definition takes a few minutes at that rate.

Modem

A modem converts the signal arriving on your line into data your devices can read, then converts it back on the way out. Most Australian homes now run a combined modem router in one box, which your provider usually supplies when you sign up.

NBN

The NBN is Australia’s national broadband network. NBN Co builds and operates it as a wholesale service, so you don’t buy from them directly. Retailers purchase access and sell you the plan, which is why prices and speeds differ between providers on identical connections. Compare internet plans by address.

NBN Fixed Wireless

NBN fixed wireless delivers the connection by radio signal from a nearby tower to an antenna on your roof. It serves regional and outer suburban areas where running fibre isn’t practical. Speeds hold up well, but can dip when local demand peaks.

Ping

Ping is the test that measures latency, and also the number that the test reports back. A result of 15 milliseconds means your data made the round trip in that time. Lower is better, and anything under 30 milliseconds suits gaming and video calls.

Router

A router shares one internet connection across every device in the house and runs your wifi network. It sits behind the modem, or inside the same box on most home setups. Position affects wifi range more than most people expect.