All projections follow the same basic structure.

• timeline - for each year, shows the start/end dates of the financial year and the ages of the client & partner.

• client - the full projection details that apply to the client specified in the input. If a partner is specified, a partner object would also be included.

• client/income - all types of income including salary/wages, Centrelink age pension, salary-packaged tax-free income, rebates and any other income.

• client/superContributions - all types of superannuation contributions including SG, concessional, non-concessional, spouse, employer-matched, government co-contributions and Low Income Superannuation Tax Offset amounts.

• client/accumulationAccounts - for each account in accumulation phase, includes opening/closing balances, withdrawals, transfers, contributions, interest, fees, tax, capital gains and subsidies.

• client/pensionAccounts - for each account in pension phase (including Transition to Retirement pensions), projects the opening/closing balances, pension amount, interest, fees, subsidies, rebates, tax-free balances and lump sum withdrawals.

• client/assets - for each asset, projects the opening/closing balances, interest, fees, capital gains, and any additions or withdrawals.

• client/debts - for each debt, projects the opening/closing balances, interest, fees, and any repayments or withdrawals.

• client/tax - all tax calculations that are applied to the projection, including franking credits, pension tax/rebates, tax paid on lump sums withdrawals, Medicare and other levies, deductions, offsets and tax-free amounts.

• client/summary - aggregates data from the projection for ease of reference. This includes the total opening/closing balances across all accounts.

The timeline provides the relevant dates and ages that apply to each year of the projection.

• index - the 0-based index for the year of the projection. A similar index property is included throughout the projection data that relates to the year described by this annualDetails object.

• year - the year of the projection, represented as the year the financial year begins in. For example, the 2021/22 financial year would show as 2021.

• clientAge - the age of the client at the start of the financial year. A partnerAge is also shown if a partner is included in the projection.

• startDate - the starting date for the year of the projection. This will usually be the financial year start date but may be different in the first year if the projection start date was not 1st July.

• endDate - the date of the last day for the year of the projection

Now we start getting into some of the projection calculation results. The income object (and all other projection objects) include a list of years. Each year contains multiple projection fields with the results of all the related calculations performed for that year.

Let’s look at the first year of the projection, which has an index of 0.

There are 3 other fields shown in this example:

• salaryWages - the salary or wages as a gross amount including super guarantee (SG) contributions

• salaryWagesLessSg - the salary or wages as a gross amount excluding SG

• otherIncome - other non-employment income that may have been received (e.g. rental income)

Each field contains two figures:

• value - the calculated amount as a future value amount. That is, with no adjustment for inflation.

• pv - the calculated amount shown as present value. In our example, we did not have an inflation amount specified, so this matches the value.

In our example, salaryWages and salaryWagesLessSg have been calculated as $50,000 and $45,454.55 respectively.

The otherIncome field can be impacted by part-year projections not starting on 1st July. In some cases, AdviceEngine needs to consider amounts received in the first year prior to the projection start date. The three sub-fields represent this split:

• prior - the amount received in the same year but before the projection start date

• remaining - the amount projected to be received in the same year after the projection start date

• annual - the total amount calculated for the projection year

Any field like otherIncome that requires this split will include the prior, remaining and annual values. Each of these also shows both the value and pv amount.

We did not specify any other income in our example request so all fields are 0.

After these first 3 example fields, more income-related fields are shown to complete the set of income-related amounts calculated for the first year.

The next year is shown with an index property of 1. The same structure used in the first year is then repeated for each year of the projection. In this example, we can also see the impact of the default 4% income index assumption that has increased salaryWages from $50,000 in year one to $52,000 in year two.

Wrap Up

You’ve learned the concepts of:

1. The timeline provides the start date, end date and ages of the client and partner throughout the projection. Each year of the projection includes a 0-based index property that is described by the timeline.

2. The client and partner projections include a range of sections such as income, super contributions, accounts, assets, debts and tax.

3. Each section includes a number of calculated fields such as salaryWages for each year of the projection

4. Each field shows a calculated value (future value) and pv (present value)

5. Fields that need to be considered in part-year projections show prior/remaining/annual amounts describing the amounts considered before the projection start date, for the remainder of the year and the annual amount

These concepts form the foundation of interpreting the projection data model.