XPLAN Version Enhancements - Major Release September 2021 (Version 21.9.185)

XPLAN Version Enhancements - Major Release September 2021 (Version 21.9.185)

XPLAN Major Release - September 2021 (Version 21.9.185)

Risk Researcher

Design and Distribution Obligations (DDO)

XPLAN now has Target Market Determination (TMD) screens to respond to ASIC regulatory Guide 274 - Product Design and distribution obligations (DDO) and are available when modelling. For more information on DDO and TMDs, please click here.

Premium Estimates
On the Premium Estimates screen, the additional Information panel has been extended to include a TMD section. This will list any applicable TMD documents for the selected product. 



Due to the TMD regulations not coming into effect until 5 October 2021, most TMD documents will not be available until this date. Where a document is unavailable for the selected product, no TMD section will appear in Additional Information.

TMD Declaration
For recommendations, the ability to complete a TMD Declaration is now available for each recommendation:



On the selection of the TMD Declaration menu option, the TMD Declaration screen allows you to elect the type of advice given and whether TMD requirements have been met:


 
In the case that TMD requirements are not met, you are provided with a method to record the reasons including if a significant dealing has occurred. 

PDS Downloads
Direct links to TMD documents are available in the PDS downloads section within Knowledge Base:



TMD documents shown within the PDS Downloads section is not linked to a specific XPLAN version. The link will be accessible where TMD documents are made available. 

WealthSolver

Design and Distribution Obligations (DDO)

XPLAN Version 21.9.185 now has a Target Market Determination (TMD) screen, as part of DDO Solution in response to the ASIC Regulatory Guide 274  - Product Design and Distribution Obligations and is available when modelling. The TMD declaration screen link is available at the Proposal Summary stage of a scenario. It is available when the proposal status is set as Recommend and Acquire or Client Requested. 


The TMD screen allows the Type of advice provided to be selected. The choices are Personal, General and No Advice. The next step is to respond to the question, "Does the client meet the platform TMD requirement?"



If the response is Yes, them all of the following question responses will default to YES:



If the response is No, a text box will appear with a new question, "Is this a Significant Dealing? " and a text box will appear:


If the response to the significant dealing is No, then the above text box will need to be completed. 

If the response is Yes, an extra text box is available to explain why it is a significant dealing. Default text is available.



Where General and No Advice has been selected, the platform TMD is No and significant dealing is Yes, an additional text box for "Why has the dealing proceeded?" will need to be completed. 


The next query that requires a response is "Does the client meet the following investment options TMD requirement?". All investment options based on the proposal will appear and all will require a response. When the platform has met the TMD requirements, all investment options will default to Yes. Where the platform has not met the TMD requirements, all the investment options will default to No. 

If the investment option meets the TMD requirements, Yes should always be selected.

If the investment option does not meet the TMD requirements, No should be selected. 

When no is selected the significant dealing query will appear as well as the appropriate text box depending upon the response.



Where General and No Advice has been selected, the investment option TMD is No and significant dealing is Yes, an additional text box for "Why has the dealing proceeded?" will need to be completed. 

Not applicable is available for options that do mot require a TMD such as but no limited to ASX shares. 

Once responses have been recorded for the platform, investment options(s) and any required text boxes, Save needs to be selected: 



All field shown are mandatory. If any part of the declaration has not been completed a warning message will appear.



Once successfully completed the TMD indicator will appear as Green in the Summary Page:



You are also able to access the pdf of the TMD. There will be a link next to the name of the platform and investment option. If there is a TMD available, the link will be a pdf symbol. Platform TMDs will also be avaialble in the research for each plan under the Product documents. 



Where there is no link to a TMD available an information symbol and note that the link is not available will appear. 



The Scenario Compliance report has been updated to reflect the TMD declaration screen responses: 


Relevant syntax is available.

Xtools+/CALM

Improved Defined Benefit Calculations

Xtools+/CALM now have additional defined benefit schemes to accommodate a much wider range of defined benefit contribution scenarios.

Three Options for the treatment of Defined Benefit Salary Sacrifice Contributions

There are now three different options to choose from for defined benefit salary sacrifice treatment so salary sacrifice can be included when excess concessional contributions tax and division 293 tax is calculated. Previously, CALM assumed that salary sacrifice contributions to a defined benefit fund would not impact an individual's concessional cap or notional contributions, however users requested we count salary sacrifice contributions towards the individual's concessional cap, and as a result,  3 different options could be applied.

Excess Concessional Contributions tracking for Defined Benefit Funds
You can now treat a defined benefit fund as NOT grandfathered* and therefore model the excess concessional contributions that may be generated by defined benefit contributions. Previously, CALM assumed that all defined benefit funds were grandfathered.

*accounts established before 5 September 2006 or 12 May 2009 may be grandfathered, provided certain conditions continue to be met. Notional Taxable Contributions for grandfathered accounts are limited to the general concessional cap. 

The new options are highlighted in the screenshot below: 



Division 293 tax modelling for Defined Benefit Funds (High Income Contribution Strategy)
Concessional contributions to a defined benefit fund are now included in Division 293 tax calculations. Division 293 tax of 15% applies to concessional contributions that take an individual's total income and concessional contributions over $250,000, however it does not apply to excess concessional contributions.

You can opt  to model any excess concessional contributions tax or division 293 tax being paid from the individual's other super accounts or from their cashflow. 

The table below details the application of each defined benefit salary sacrifice treatment options with regards to grandfathering and Division 293 tax. 


Salary Sacrifice Treatment Option
What It Does
Grandfathering & Excess Concessional Contributions
Division 293 Tax (High Income Contribution Surcharge)
Examples
No Impact
(Existing)
Defined Benefit Salary Sacrifice Contributions:
  1. Reduce cashflow
  2. Reduce assessable income
  3. Do not impact concessional or notional contributions as salary sacrifice contributions are already included in notional taxable contributions
Grandfathering is not relevant to salary sacrificed amount as grandfathering only applies to notional taxable contributions.
No impact as salary sacrifice contributions are already included in notional taxable contributions

  1. Unisuper defined benefit division with maximum default member contributions (pre tax)
  2. QSuper defined benefit account with standard salary sacrifice contributions
Increases Concessional & Notional Taxable Contributions
(New)
Defined benefit salary sacrifice contributions:
  1. Reduce cashflow
  2. Reduce assessable income
  3. Increase notional contributions
  4. Are counted towards concessional cap as part of notional taxable contributions
If the account is grandfathered, notional taxable contributions (which are increased by defined benefit salary sacrifice contributions) are limited to the individual's concessional cap when excess concessional contributions are being assessed.
Notional taxable contributions (which are increased by defined benefit salary sacrifice contributions) will be assessed for Division 293 tax.

If the account is grandfathered, the entire amount will be assessed for Division 293 tax.

If the account is not grandfathered, any excess concessional contributions are excluded from the Division 293 assessment

  1. RBF (Retirement Benefits Fund) contributory scheme with salary sacrifice contributions
  2. LG Super Defined Benefit Scheme with salary sacrifice contributions
  3. EIS Super with salary sacrificed defined contributions to the personal account.
  1. Increases Concessional Contribution
  2. (New)
  1. Defined benefit salary sacrifice contributions:
  1. Reduce cashflow
  2. Reduce assessable income 
  3. Do not impact notional contributions
  4. Are counted separately towards the concessional cap
  1. As salary sacrifice contributions are separate to notional taxable contributions, they are not caught up in grandfathering
  1. Salary sacrifice contributions are counted towards concessional cap and can attract Division 293 tax along with notional taxable contributions

  1. CBA Group Super Div CC with compulsory salary sacrifice contributions

Option to Specify Custom Defined Benefit Values
You can now enter specific defined benefit values for each period of your projection by selecting Specify Custom Benefit Values instead of Specify Future Benefit Value. This option will help with contribution planning as your manually calculated defined benefit values will be factored into Total Super Balance calculations and generate more accurate Concessional and Non Concessional Contribution cap calculations.

To use this option, set Calculation Type to Specify Custom Benefit Values and enter the specific values into the Lump Sum Value tab:






XPLAN Fixes



Xtools+/CALM

CALM: An Account Based Pension Re-boot strategy was previously allocating more funds to a Retirement Phase Account Based Pension than the individual's Unused Transfer Balance Cap. The Re-boot feature now allocates the correct amount to a Retirement Phase Pension.


CALM: Previously an Existing Defined Benefit Pension entered at Input > Individual > Super > Defined Benefit (with the commencement date set to Start) was being treated as a new Defined Benefit pension and Crediting the Transfer Balance Account. The Transfer Balance Account is no longer being credited with existing defined benefit pensions, as these should already be included in an individual's Transfer Balance Account.



PORTFOLIO

For clients using proposal_snapshot resourceful APIs to create proposals, with this fix, proposals can now be created for Xplan accounts with no cash holding and with an open order.

With this fix, the DB key violation issue when two providers import configuration files at the same time has been resolved. Now all jobs will have unique ID’s to prevent conflicts.




CLIENT FOCUS

You are now able to enable client access when creating a client through a custom add client wizard.
Previously, when old income data existed for a client, the income section of the fact find would fail to load when the client would access Client Portal. This has now been fixed.


An issue causing the Opt-in History page to error when the update type was not set has now been fixed.


Previously when logged in with Access Video Meeting Integrations capabilities, you were unable to view the video (zoom) meeting icon within the Email/SMS Reminders tab when attempting to create a new Diary Event. This has now been fixed.


For more information or if you have any questions around any of the above, please contact support@wealthaxis.com.au.

 









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