After you've entered your tax strategies and completed any distributions, TaxPlan calculates:
Distributions BEFORE Strategies
Distributions AFTER Strategies, and
Estimated Taxable Income AFTER Tax Planning
TaxPlan then automatically calculates:
Gross Tax Payable
Medicare Levy
Medicare Surcharge
HELP and TSL Repayments
Low Income Tax Offsets
Low and Middle Income Tax Offsets (not applicable for 2023 and the following years)
You can then enter the following data into the blue cells plus any other offsets that aren't automatically calculated:
Small Business Income Tax Offset
Spouse Super Contribution Tax Offset
Other Offsets
Div 293 Tax on Super Contributions will be calculated.
Tax Assessed
Tax is then assessed, calculated as the sum of the data above, including:
Franking Credits (automatically calculated)
Other Tax Credits
for individuals enter Estimated PAYG Tax on Wages
Average Tax Rate Paid
Average Tax Rate Paid is not the estimated tax or refunded tax. It is Tax Assessed divided by Estimated Taxable Income.
The Group Report summary in the right-hand column shows a Tax Payable amount with an Average Tax Rate percentage.
It's always good to focus on the Average Tax Rate as clients appreciate seeing it for every entity or individually and then summarised in a total on the right-hand side. These amounts also flow through into the TaxPlan reports.