nathan.greenaway's avatar
nathan.greenaway
Valued Supporter
2 years ago

Adjusting tax withheld in Xtools+

Hi there,

Could anyone advise whether it is possible to adjust the 'tax withheld' for future financial years in an Xtools+ scenario?

In our current scenario, the prospective client has additional tax withheld each year as a form of 'forced savings,' resulting in a tax refund. I would like to accurately reflect this in their current scenario illustrations

Cheers Nate

xplan

9 Replies

  • lana.graham's avatar
    lana.graham
    Icon for Xplan Product rankXplan Product
    2 years ago

    Hi nathan.greenaway,

    So wonderful to receive a question about Xtools+!

    So it seems like your client has lodged an income tax withholding variation with the ATO to have PAYG withheld at a set percentage - is that correct?

    There isn't currently an option to withhold tax at a set percentage, but you can adjust whether they are claiming the tax free threshold or not. 

    Here's what it looks like when you are entering the salary:

    Would it work for you to set the Claim tax free threshold option to No?

    Kind regards,

    Lana Graham
    Associate Product Manager - Xtools

    • nathan.greenaway's avatar
      nathan.greenaway
      Valued Supporter
      2 years ago

      Thanks for your reply, lana.graham 

      Unfortunately, setting their claim tax-free threshold option to 'No' still doesn't accurately reflect their current situation. After reaching out to a few others, it seems this scenario may be difficult to model. Some have suggested creating a bank account with a 0% interest rate (to track the additional tax withheld), directing this portion of their income (the additional tax withheld) to this bank account, and then transferring these funds back as a 'tax refund' (via capital receipt) each year. However, this approach also fails to accurately reflect their after-tax employment income in their cash flow.  

      Ultimately, we could still illustrate the tax savings and the other benefits of our advice in their SOA. 

      Thanks again for reaching out. 

      Cheers Nate  

      • lana.graham's avatar
        lana.graham
        Icon for Xplan Product rankXplan Product
        2 years ago

        Hi nathan.greenaway ,

        Thanks for your reply. Was I correct that your client's PAYG tax is being withheld at a set percentage? What is the percentage used in this instance? I'm asking in case this is something we can build.

        Thanks,

        Lana Graham
        Associate Product Manager - Xtools

  • Julie.Conneely76859's avatar
    Julie.Conneely76859
    Network Navigator
    2 years ago

    I have a similar query - we have a client that pays extra PAYG tax of a set $ amount per fortnight. I would like to know if this can be modelled to accurately reflect in both cashflow and tax details. 

    • lana.graham's avatar
      lana.graham
      Icon for Xplan Product rankXplan Product
      2 years ago

      Hi Julie.Conneely76859 ,

      As noted earier, you currently have the option to claim the tax free threshold or not - there is no way to set another level of PAYG withholding. 

      I'd be happy to record your feedback and consider adding more options, however I wasn't aware you could vary your PAYG tax amount in set $. I'm very interested to see some examples of how the ATO applies an income tax withholding variation as I want to think about how we might align the PAYG withholding inputs - can you help?

      kind regards,

      Lana Graham 
      Associate Product Manager - Xtools

Welcome to the Advisely forums!

This is where financial advice professionals from all walks of life come together to share knowledge, swap ideas, solve problems, and talk all things growth and efficiency.

Here are some tips when posting in the forums:

  • Be respectful and courteous to fellow members
  • If a reply helped you, mark it as a solution so other users can find it easily
  • Take a moment to read through our Community Guidelines
  • For Xplan support issues, it's best to raise a ticket in Iress Connect first. You can also search the discussions for posts about the same issue first before starting a new thread.
  • Keep an eye out for our 'Ask me anything (AMA)' threads – these are live text-based Q&As with industry and Xplan experts during a set period of time. Find out when the next one is happening here.
  • Don’t be shy! You don’t need to be an expert to help someone out. Many users are looking for practical advice, shared experiences, or just a fresh perspective
  • Introduce yourself and meet other members here!

We’re glad you’re here – see you around! 😁

Recent Discussions

Related Content