Being across tax change events and educating your clients to give them the power to make the most...
The ATO Division 7A loan changes are a ticking time bomb that may result in a hefty repayment increase for your clients, with the interest rate going from 4.77% to 8.27% - that’s an increase of 73%! (Learn more about Div7A and the changes.)
We’ve launched the 2024 Div7A Advice system and client advice report in TaxPlan Advance to make it easy for you to empower your clients to make informed decisions about these changes.
The Div7A Advice system and client advice report is comprised of several tools to help you and your team:
- Alert your clients to the change (Client VPP Email – Div7A),
- Educate them on the work required (Client VPP Email – Div7A),
- Compare strategies for their situation (Div7A Loan Eliminator Worksheet),
- Prepare an advice report (Div7A Company Loan Elimination Tax Advice), and
- Communicate and explain this advice (Client VPP Email – Div7A).
Client VPP Email – Div7A
TaxPlan Advance contains an email template in the VPP (Value, Plan, Price) method that you can use to advise your customers of the changes and inform them of the work required on your part and how this will benefit them. We suggest that you send this to all your clients with Div7A loans.
Div7A Loan Eliminator Worksheet
This resource is an automated spreadsheet that allows you to enter the Div7A loan’s opening balance, remaining years and current balance quickly and easily illustrating the current scenario for your clients.
The worksheet also contains an area for modelling accelerated loan repayments, allowing you to show the interest savings of paying off the loans faster.
Standard TaxPlan Advance features mean you can create scenarios to compare the amount of tax saved with the different accelerated loan repayments.
Div7A Company Loan Elimination Tax Advice Report
New TaxPlan Advanced features allow you to automatically produce an advice report to inform your clients of the benefits and potential savings.
The report is branded with your logo and addressed to the client. It outlines the impacts of Div7A changes and clearly explains the risks and benefits, and tax savings or losses of the scenarios you’ve created in TaxPlan Advance.
We’re excited to bring you these new tools in TaxPlan Advance that we know are going to make navigating these Div7A loan changes easier for you and your customers.
Interested in learning how you can benefit from the new 2024 Div7A Advice System? Book a demo today.
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