Tax levies on borrower income
Income tax tables and levies can be used to assist in calculating the income value of personal borrowers. The income tax tables is a high level tax percentage that can be applied to income values to estimate the “after tax” values. Clearmatch is not a platform that specializes in all the tax settings. This is only a simple tax rate that can be used with simple levies in order to get an estimated after tax value. The platform does allow for simplistic levies to be applied in order to get to a more accurate estimate of after tax values.
The information in the tax and levy tables needs to be periodically updated to be in line with the values on the Australian Taxation Office. When new information is published a new table with that new information must be created.
The levy is used to ESTIMATE the after tax value if the borrower supplies income before tax and also used to ESTIMATE the before tax value if the borrower supplies income after tax.
Income tax and levies only apply to personal borrowers. Business borrowers will need to supply both before and after tax values.
See the surplus calculation to see where the levy is applied
1. Navigate to Configuration -> Setup -> Income Tax Levies
2. Supply the details for the levy
Start date: the date from which the levy will be applied. At times levies are inly applied for a certain period.
End date: the date to which the levy will be applied
Minimum and Maximum Amount: the levy will only be applied if the borrowers income is between the minimum and maximum amount
Rate Percentage: the levy rate
State: Select the state where the levy is applied