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Income
Items which should be entered under Income
You should enter under income, any current or future income that is not related to assets, government benefits or pensions. Examples of income you should enter include Salary, business income and child support payments received or an inheritance.
Do not enter as Income:Rental income from an investment property - Rental income should be entered with the other details of the investment property (for more details see Investment Property).
Interest earned on a cash account - This will be calculated based on the annual balance and the interest rate entered for the Cash account.
Dividends from shares or managed funds - This will be calculated based on the annual balance and the investment profile entered for the Shares/Managed fund.
Family Tax Benefit - This will be calculated based on the details of the Individual and Dependants. For more information see How to include the Family Tax Benefit (FTB-A and FTB-A)
Account-based pension - This will be calculated based on individual's age, super balances and living expenses. For more information see How to include an account-based pension (ABP).
Transition to Retirement Income Streams (TRIS) - This will be calculated based on individual's age, super balances and living expenses. For more information see How to include an account-based pension (ABP).
Government Age Pension - This will be calculated based on the individual's eligibility. For more information see How to include or exclude the Government Age Pension.
How to add Income
To add current and future income, go to the Cash flows & Goals step (top menu), click the Cash flows sub-step and find the Income section, then click the Add income button. (Note: Income is entered in this section, rather than the 'Current situation' so you can vary the future income and compare scenarios with different income)
Make sure you apply the correct income in the correct correct years. For more information, see How to use the series builder. However, note that some income is stopped automatically at retirement, so you don't need to edit this manually.
It is important to choose the correct Type for income, since the type you choose can affect the calculations for:
Tax assessment
Government pension assessment
Super guarantee
Whether the income is automatically stopped at retirement
For the list of pre-set values, see the next section.
Pre-set values for each income type
It is important to choose the correct Type for income, since the type you choose affects tax calculations and other defaults.
Income Type | Pre-set values | Comments Note that you cannot change the pre-set values, but you can change the type so that the required pre-set values are applied |
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Wages/Salary |
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Bonuses |
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Business |
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Child support payment |
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Commissions |
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Gift |
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Non-taxable income |
| Use this type if the income is non-taxable and does not fit into any of the above categories. |
Taxable |
| Use this type if the income is taxable and does not fit into any of the above categories. |
Websolve options
Data entry tips
It is important to choose the correct Type for income, since the type you choose can affect the calculations for:
Tax assessment
Government pension assessment
Super guarantee
Make sure you apply the correct income in the correct years. For more information, see How to increase or decrease a value in the series builder.
If required, you can also vary income depending on the individual's circumstances (e.g. going back to full time work after being on parental leave, moving to part-time work before retiring).
If you need to enter income relative to an individual's or dependant's age, you may find the Age Lookup table useful
Changing an income in the future (e.g. part-time to full time, or vice versa) | You can increase or decrease an income in later years in the Customise field of the series builder. For more information, see How to use the series builder. |
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Applying an income frequency different from annual (e.g. weekly, every 2 years) | By default, when you enter income it is annual, but you can change this by choosing another option in the Frequency field. e.g. 'monthly', 'every 2nd year', 'every 3rd year' etc. |
Compare the impact of a reduced or increased income (e.g. compare the impact of working full time vs working part-time) |
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Results for income
See Income results
Related items
Strategy Development Service (SDS) and Background adjustment options
If the case includes complex analysis that you are not able to do in Pathfinder yourself, Optimo Support may be able to do some background adjustments to help you get the results you need. Depending on the complexity, this may be included as part of the standard support or additional charges may apply. For more details, please see Modelling outside the scope of Pathfinders' standard modelling.
Some examples of things that are outside the scope of Pathfinder's modelling and how Optimo support can help, are listed below:
Adjustment | Details | Information required by Optimo Support | Examples where additional charges may apply |
|---|---|---|---|
Enable the super guarantee for income earned after an individual retires | Salary/wages income automatically ends on the individual’s specified retirement date. It is not possible to automatically apply the super guarantee to any income earned after this date. | Please tell us:
| If this only needs to be applied to one income for one individual, then it would be part of standard support. |
Salary packaged expenses such as meals and entertainment or a car lease | This can usually be done with a workaround. | Please tell us the specific details of the salary packaging. That is, the amounts and the years, and we’ll see what we can do. | If you require us to do research into the particular salary packaging or do calculations for you, then additional charges may apply. |