This short article explains the Estimated Tax Payable section of TaxPlan
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 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.