Do you struggle with getting Xplan to work in your business? Does it feel like everyone in your office is doing their own thing, making it hard to tell where a client’s at or where important notes are kept?

If this sounds like you, you might be missing an “Xplan champion” in your business.

The Xplan champion is key to making sure your advice technology works for your practice. Much like the executive chef who conducts the operations of a well-oiled Michelin-star kitchen, the Xplan champion ensures that your practice’s everyday operations chugs along smoothly: everyone knows their role, the tasks they need to do and when they need to do them.

This means they have a big job ahead of them, but many hands make light work. Depending on the size of your business, the Xplan champion may delegate other team members as “owners” of certain Xplan modules – the paraplanner, for example, might own Xtools+ and WealthSolver/Risk Researcher. 

The Xplan champion can be a client services administrator, paraplanner or adviser, and their roles and interests should be aligned with the mission of facilitating an efficient and effective advice process via Xplan. 

Here are some of the core qualities we believe a successful Xplan champion should have in order to become the executive chef of your advice practice:

Curiosity

Xplan is a behemoth when it comes to functionality, and often there are many ways to skin a cat. So a great Xplan champion should always be curious about existing features and the options available to solve a particular business problem.

They should always be open to learning new features and staying on top of updates (all can be found in Iress Community). They should always be asking themselves, “Is there a better way to do this?” 

Don’t be afraid to reach out in Community or Advisely if you have a sticky problem you’re trying to solve – other users may have an answer at hand!

Influence

Influence plays an important role, too. No, I’m not talking about TikTok videos, but rather the ability to cajole the advice team into using Xplan systematically.

A process is only as good as the people using it, so the Xplan champion acts as the bridge between the leadership’s vision and the rest of the team.

This means understanding how the team uses Xplan: where are the pain points? Can we find a solution? Everyone needs to be on the same page as to how things should be done.

The sage Xplan champion understands that not everyone embraces change easily. Be patient, positive and persistent when encouraging adoption. Celebrate small wins to keep momentum.

Connector

The Xplan champion connects Xplan solutions to their specific business needs.

Key to this is understanding how different parts of Xplan interrelate:

• Do you keep seeing duplicate clients (could be a datafeed or client wizard issue)? 
• Do workflows keep getting stuck at certain stages (could be a user or automation problem)? 
• Are you seeing unreasonable income and growth projections in Xtools+ (assumptions set may need updating)?

Great Xplan champions have the ability to distill the business problem that needs solving, find the solution and roll it to the wider business. Instead of waiting for issues to come up, they anticipate pain points, look for efficiencies and encourage others to bring ideas for improvement.

This is a skill that takes a little while to cultivate, but a healthy dose of curiosity will get you there.

Have I missed anything? What other qualities should a top-tier Xplan champion possess? Let us know!

As we all know, though, understanding client circumstances and modelling options can take up a significant amount of time and resources. And this is where quality, up-to-date modelling tools and calculators can make the biggest difference.

Throughout this guide, we’ll explore how the Xplan advice toolset facilitates easier, faster scenario modelling – helping you save time, keep clients engaged and deliver the most accurate projections possible.

Click below to download.

Over the past few weeks, our in-house Xplan experts have shared valuable insights into Xplan’s modelling tools – Xtools, Xtools+ and Visualise – focusing on retirement scenarios. 

Now it's time to take a look at some tips and tricks to help you make the most of these tools.

Don't forget about Xtools

Whilst Xtools+ can be a powerful comprehensive tool to use for holistic projection modelling, don’t forget there are some great mini calculators in Xtools that allow you to quickly model a specific scenario.

For example, if you just want to calculate how much additional savings need to be made for a client to meet a short term goal or how much will a client need in retirement savings to last a set number of years with a specified income amount. 

How does this help?

Using an Xtools calculator restricts the number of inputs to what is only necessary to complete the calculation. Input that is irrelevant to the formula is not included in the tool, saving you time and effort.

Note: Some licensees have coded advice document templates to only pull through tables from Xtools+ but forget about Xtools. If this is the case, you can always export the table (or chart) directly from Xtools and insert it into your document (PDF and CSV is available in most cases).

Make use of the import function

Have you ever found yourself wondering if there was an easier way of entering data? Ever thought, "Haven't I already entered this in somewhere else?”

Well, you aren’t alone. Making use of the import function can help you pull basic data into Xtools+ that you have already collected, such as assets, income and expenses.

When entering data the first time, it's always good to think about where else this piece of data is likely to be used, and to make sure it's entered in a way that can be easily picked up elsewhere in the system.

How does this help?

In addition to saving time from double entry admin, importing data that you have already entered into Xplan once, and utilising it across multiple areas minimises the risk of conflicting data (i.e. accidentally transposing the wrong numbers or information for a particular field).

For more details, see this Iress Community article: Xtools+: Keep CALM and STOP rekeying data. IMPORT from Client Focus!

Consolidate like-for-like investments into asset classes

When modelling in Xtools+, do you ever feel like adding in each and every individual investment can get cumbersome? Does it make your tables look long and too busy?

Don't feel that every investment needs to be listed individually in Xtools+. Using a generic title such as “Share Portfolio” and combining all share holdings into one line will help get you a neater output in a shorter amount of time.

This is particularly useful when you aren’t making any changes to the portfolio and just need to show the overall impact of investments over time.

How does this help?

This saves time on data entry and looks cleaner both within Xtools+ and any merged document report utilising the output display tables.

Note: Be wary if you want to use specific returns on particular share holdings rather than the standard asset class return, as consolidating the holdings into one single line will not allow you to model different returns. Also note that your site administrator may have limited the rate you can enter as a Custom return to the standard return for the asset class.

Change your projection time frame settings

Did you know you can customise what is displayed on your projection output time line and view? Selecting the “Date” hyperlink at the top of most of your display pages will allow you to modify this setting.

You can select the length of the projection term to display or you can change the period duration. 

You can even hide all the rows that have zero amounts in them (“null” rows). Just don't forget to un-hide them if you need to manually fill in a row.

For even more flexibility, you can also switch between client, partner, or longest life expectancy when you set the projection length. Previously, the projections were always based on the longest life expectancy.

How does this help?

Using custom time periods for projections will help highlight the more important periods in output displays, making it more meaningful for your client.

Visualise

Want a visual tool to help when discussing strategies with a client face to face? Try Visualise. You can build out a projection right in front of your client while showing them the impact of changes to their strategy.

You can then use this to tie into your advice process and compliance requirements.

Not only is Visualise a great tool for presenting advice to a client, it can also be used before this, to help with gathering data and building strategies.

Note: Even if you don't have an Xtools+ licence, you can still use some elements of Visualise, such as fact finding and projections.

If you have any of your own exciting tips and tricks when it comes to modelling please share them with us, we would love to hear about them!

For advanced tips and tricks on modelling specific scenarios, check out the following articles in the Iress Community:

• CALM Xtools+ Guides and troubleshooting (Australia) 
• Need to model an Annuity in Xtools+? Keep CALM and start here!
• CALM Modelling Tips 
• Trust and Company Modelling

In financial planning, precision and adaptability are essential. Xtools and Xtools+, two powerful features within Xplan, provide financial advisers with tools for creating tailored client plans.

While Xtools caters to straightforward financial scenarios, Xtools+ is designed for advanced, complex planning needs. In this blog, we’ll explore the basics of Xtools+, highlight its differences from Xtools, and explain how it empowers advisers to deliver exceptional value to their clients.

Xtools vs. Xtools+: what's the difference?

Both Xtools and Xtools+ are part of the Xplan ecosystem and share a common goal: to help advisers create robust financial plans. However, they differ in scope and functionality.

In essence, Xtools is ideal for quick, straightforward analysis, while Xtools+ is designed for advisers who need a more granular and comprehensive approach.

Key features of Xtools+

1: Advanced scenario modelling

Xtools+ allows advisers to compare multiple financial strategies side by side. For example, you can model different investment or debt reduction strategies to identify the most effective approach for your client.

2: Lifetime cashflow analysis

Unlike Xtools, which provides short-term insights, Xtools+ enables lifetime cash flow forecasting. This includes detailed projections of income, expenses, savings, and investments over decades.

3: Multi-entity planning

With Xtools+, you can model scenarios for multiple entities, such as families, couples, or businesses. 

This feature is essential for clients with interconnected financial goals, such as estate planning or succession strategies.

4: Easy to digest outputs

The depth and breadth of detail available within Xtools+ can often be overwhelming for clients.

To address this, Xtools+ provides charts and graphs, to make complex information easier to understand, enhancing client engagement.  These charts and graphs can be utilised on-screen or included in merge reports (eg SOA).

Benefits of Xtools+

1: Comprehensive planning

Xtools+ allows for detailed, multi-faceted financial planning. Its ability to handle complex scenarios ensures advisers can meet even the most demanding client needs.

2: Enhanced client trust

By offering sophisticated analysis and presenting clear, visually engaging reports, advisers can foster greater client confidence. Clients gain a deeper understanding of their financial strategies and see the value of professional advice.

3: Competitive edge

Advisers using Xtools+ can differentiate themselves by offering advanced, personalised planning that goes beyond standard industry practices.

4. Efficiency and accuracy

The seamless integration with Xplan ensures that client data flows effortlessly into Xtools+, reducing manual errors and saving time.

How to get started with Xtools+

• Learn the features: Familiarise yourself with Xtools+ utilising training sessions and user guides available through the Iress Learning Centre.
  
  
• Prepare client data: Ensure client profiles in Xplan are comprehensive and accurate.
  
  Practice scenarios: Experiment with real-world cases to understand how different variables impact outcomes.
  
  Engage clients: Use Xtools+ interactively during meetings to demonstrate the impact of different strategies in real time.

Final thoughts

Xtools+ is a powerful tool within Xplan, offering financial advisers the tools they need for advanced planning and customised client solutions.

While Xtools is an excellent starting point for simpler scenarios, Xtools+ allows advisers to deliver deeper insights and strategies for complex client needs.

By understanding the differences between Xtools and Xtools+ and mastering their capabilities, you can elevate your practice, improve client outcomes, and secure your position as a trusted adviser in an increasingly competitive market.

For more information refer to the Iress Community or to arrange for a demonstration click here.

In the world of financial planning, efficiency and precision are key to delivering quality advice and maintaining a competitive edge.

Xtools, a powerful component within the Xplan platform, empowers financial advisers to achieve these goals. If you're new to Xtools or need a refresher, this post will guide you through its basics and explain how it enhances financial planning workflows.

What is Xtools?

Xtools is a suite of financial calculators and modelling tools within Xplan, designed to help advisers analyse client financial situations and create comprehensive plans. Whether you’re calculating retirement needs, modelling cash flows, or evaluating insurance requirements, Xtools simplifies complex calculations and presents data in a clear, workable format.

The primary purpose of Xtools is to provide advisers with an integrated, user-friendly way to model financial scenarios. By offering seamless integration with other Xplan modules, Xtools eliminates the need for external tools, ensuring consistent and efficient data management.

Key features of Xtools

Xtools offers several core features that enhance its utility for financial advisers.

1. Scenario analysis

Xtools allows you to model "what-if" scenarios to evaluate the potential impact of different financial decisions on your clients' goals. For instance, you can assess how increased savings, investment performance, or changes in expenses might affect retirement outcomes.

2. Cash flow and budgeting

One of the most valuable features of Xtools is its ability to model detailed cash flows. Advisers can visualise clients' inflows and outflows over time, helping them identify surplus or shortfall periods and strategise accordingly.

3. Goal setting and tracking

Xtools makes it easy to define and track financial goals, such as home purchases, education funding, or travel. Advisers can determine the required savings or investments to achieve these goals and adjust plans as circumstances change.

4. Comprehensive calculators

Xtools includes a wide range of financial calculators, such as:

• Retirement funding: estimates retirement income needs and assesses the likelihood of meeting them.
• Debt consolidation: Models debt repayment strategies and optimises debt reduction.
• Risk needs analysis: Calculates insurance needs to ensure adequate coverage.

5. Integration with Xplan

Xtools integrates seamlessly with Xplan’s CRM and portfolio management tools. Data entered in one part of the system flows effortlessly into Xtools, reducing duplication and minimising errors.

Benefits of using Xtools

1. Improved efficiency

By consolidating all financial modelling into one platform, Xtools saves advisers significant time. There's no need to juggle multiple software tools or re-enter client information, enabling you to focus on providing tailored advice.

2. Enhanced accuracy

Xtools leverages data from across the Xplan ecosystem, reducing the likelihood of errors caused by manual entry. This ensures your advice is based on reliable, up-to-date information.

3. Client engagement

The ability to create clear, visual representations of financial scenarios helps clients better understand their financial position. Xtools’ interactive tools also encourage collaborative planning, enhancing client trust and satisfaction.

4. Regulatory compliance

By automating calculations and maintaining detailed records, Xtools helps advisers stay compliant with industry regulations, offering peace of mind during audits or reviews.

Getting started with Xtools

If you’re ready to start using Xtools, here are a few steps to guide you:

1. Training and familiarisation: take advantage of training resources provided by Iress or your firm.
   
   Many organisations offer workshops, webinars, and user guides to help advisers get the most out of Xtools.
   
   
2. Set up client data: ensure client profiles are complete in Xplan, as accurate data is critical for effective modelling in Xtools.
   
   
3. Experiment with scenarios: practice creating "what-if" scenarios to understand how different factors influence financial outcomes. This will build your confidence and expertise with the tool.

Final thoughts

Xtools is an indispensable part of the Xplan ecosystem, offering financial advisers the tools they need to deliver comprehensive, data-driven advice. By mastering the basics of Xtools, you can streamline your workflow, enhance client engagement, and improve overall outcomes.

Whether you're a seasoned adviser or just starting out, incorporating Xtools into your practice will elevate your financial planning capabilities and position you for long-term success.

For more information refer to the slide pack Powerful modelling. Powerful analysis. Powerful outcomes. or arrange for a demonstration here.

Until now, the only strategies you could model in Visualise were a work transition, entry to aged care, property sale and property rental. With the latest updates, you can model an account-based pension and downsizer contributions to super. It means you can road-test more retirement strategies together with clients and make tweaks on the go without jumping back and forth to Xtools+.

Take a look and comment to let us know what you think.

Want the full update? You can download the Product Roadmap, or for a deeper dive, watch the webinar recording here.

TNT Group director (and Advisely expert) Dela Dzadey and Iress product manager Lana Graham recently jumped onto Advisely to answer all your burning paraplanning questions.

They covered everything from how to best maximise your efficiency as paraplanners to optimising advice production with Xplan modelling tools like Xtools+.

Here are four of the most interesting conversations that came out of their AMA: 

Q: I always found it a challenge to reduce the time it took me to write an SOA as I was always tempted to go into too much detail! What are the low value areas you see paraplanners spending too much time on?

Dela: We work across several different SOA wizards and templates, and we find the wizards with sections that don't seem to feed into anything in the plan (and templates that don't run in logical order) can be very time consuming to work on. 

The final area that eats away at our time is flowcharts! We are still looking and open to any suggestions for a simple and quick flowchart tool.

Q: Any tips on reducing the load time when navigating between Scenarios, or even pages within an XTools scenario? This can sometimes take up to 5 seconds or longer to load a new page, which over time working on a plan can drain on productivity.

Lana: Below is a trick I learnt from a paraplanner shortly after joining Iress. 

In Google Chrome, right click your mouse on the Xtools tab and select Duplicate. This will give you a second window, where you can navigate to another Xtools screen.

I use this approach while testing, to check the impact of my changes on another part of the projection. You can use it, for example, to:

• Cash out lump sums from the Super Display screen and
• See the impact on Cashflow Consolidated.

Note that you should use this method on one client scenario at a time. Switching between two separate scenarios in this way can corrupt your data entry.

Something else: We’re mindful that calculations can slow the screens, which is why we are gradually adding the ‘Click to Update’ feature (example below at the bottom of the Surplus screen).

In the surplus screen, we have set up the screen so it only calculates when necessary, and when you “Click to Update.”

If there is a particular input that you feel is refreshing the calculations unnecessarily, could you please let us know by lodging a support request? We’ll look at adding a Click to Update.

Please see this Community page for How to lodge a support request.

Q: Dela, in your latest piece, you talked about the increasing demand paraplanning services and how external paraplanners have "never been busier". What would you say is the primary contributing factor here? Is it just the increasing complexity of the advice proposition? Or are planners leaning more on paraplanning support so as to scale up their operations? Or both/neither? 

Dela: There are definitely some 'complex' areas of advice that we paraplanners so more frequently than advisers, so they do lean on us to have that expertise. We are, however, finding that the increase in demand for paraplanning services is across all complexities and even review documents.

Most advisers I speak to feel that their time is being drained by many areas that aren't client facing (administration, research, ongoing services, compliance). They want to have a trusted partner that can handle the bulk of this for them, while they can focus on seeing clients. Experienced paraplanners give the advisers confidence that strategy discussions and research of products can be done in a time efficient and compliant manner. 

That then frees up the adviser's time to see more clients - leading to more advice and work for the paraplanners too!

Q: I'd like to know how to customise the return on an investment profile selected for a superannuation account in an Xtools scenario. I know it's possible for non-super assets but can this option be applied to super accounts only?

Lana: You can set a custom return for super. Note that you need to change the Investment Profile to one of the standard investment profiles instead of the Client, Partner or Joint Risk Profile. You can see the difference between Bob and Betty's Rates in the screen shot below:

A couple of other points:

1. Your licensee may have set a limit on the returns you use, so that it can’t exceed the return for the investment profile selected. In this case, if you want to maximise the return projected, you may need to select the most aggressive investment profile.
   
   

2. Did you know you can adjust all of the investment returns in a single place under Investment Returns? See below:

   

Keep an eye out on the discussions section here for upcoming AMAs.

Conversations are the core of the adviser/client relationship: they’re a golden opportunity to demonstrate the kind of value technology could never replace.

What they rarely demonstrate, though, is the amount of work that goes on behind the scenes. While there are often good reasons for moving all the detail to the back-office, what if you could bring some of that complex strategy and scenario modelling to the fore – and deliver a more productive, engaging and empowering client experience as a result?

Enter Visualise with Xtools+.

Complex modelling made simple

Xtools+ is the only advice strategy modelling tool powerful enough to accommodate the ever-increasing complexity of the average client. From retirement strategies to aged care, property gearing, investment bonds and child care subsidies, Xtools+ can handle almost any client scenario.

Historically, Xtools+ has been reserved for “behind-the-scenes” modelling and strategy development that was far too complex for use with clients. With the new Visualise capabilities, though, you can harness the power of Xtools+ in a simplified visual interface designed for client engagement and participation.

Built-in Monte Carlo simulation means that you can experiment with strategies on the go, showing your client a range of possible outcomes and demonstrating the impact of their financial decisions.

Andrew Rowan Wealth Management principal Andrew Rowan has already road-tested the strategies functionality in Visualise – with resounding success.

'"Visualise has transformed our client conversations,” he says. “Our clients love being able to see something visual in our planning and review meetings, and we can really bring them on a journey."

He adds: “Working on strategy outcomes and scenarios there and then means we save hours going back and forth to Xtools+, and ultimately our client leaves feeling empowered about their future."

Putting retirement plans into sharp focus

As we’ll soon explore in the Advice 2030: The Big Shift whitepaper (developed with Deloitte Access Economics), skyrocketing retirement demand is one of seven “megatrends” opening up new opportunities for advisers. 

Reflecting this trend, we’re rolling out multiple updates aimed at bolstering retirement strategies available through Visualise. Among these are account-based pension modelling (TTR and retirement phase pension) and downsizer contributions to super.

Commenting on the new strategies, Iress product manager Lana Graham said these updates “are designed to offer advisers and their clients the ability to experiment with different retirement decisions.”

“You can model up to two account-based pensions from Visualise,” she continued, “including transition phase as well as retirement phase. As you adjust work transitions and retirement ages during client discussions, the pensions automatically adjust so you can together see the impact on cash flow, net assets and income support.”

“You can also make lump sum contributions along with the pension, without needing to go to Xtools+ - non super assets are automatically cashed to fund the contribution, you can see whether the bring-forward rule is triggered and if contribution caps are exceeded.”

Read more about Visualise with Xtools+ here. For a deep-dive into the new retirement strategy functionality, check out these Iress Community articles on account-based pension modelling and modelling a downsizer contribution along with a property sale.

Long set aside by many advice professionals, changes in the financial landscape are driving renewed interest in investment bonds, with these uniquely structured products reemerging as another solution to help your clients on the path to achieve their financial goals. We explore the role of investment bonds in a financial planning strategy and how you can quickly evaluate the use of an investment bond for your clients.

In the Australian context, investment bonds refer to an investment-linked insurance policy (also called an insurance bond), as opposed to a debt security like a corporate or government bond. They hold distinct tax advantages for certain clients – all investment income (including realised capital gains) is taxed at 30% rather than your marginal tax rate – potentially delivering tax savings for those paying a higher marginal tax rate.

The Federal Government’s proposed $3 million cap on super balances, above which earnings would be taxed at a higher rate, underlines the importance of offering complementary investment strategies to address your client’s retirement planning . Investment bonds can be a compelling proposition for Australians investing for their retirement and for other needs, like improving social security entitlements or enabling children (or grandchildren) to pay university fees down the line or purchase a home.

How Xtools+ has evolved to meet growing demand

At Iress, we recognise that clients have individual and often complex financial situations and goals. We’re continually investing in our products so advice professionals are best-equipped to deliver on clients’ needs efficiently and effectively.

That’s why we’ve evolved Xtools+ to include a dedicated investment bond feature. This easy-to-use adviser tool, allows you to visually demonstrate the benefits of an investment bond strategy and merge the results into your advice documents. Critically, Xtools+ can show clients that you’ve rigorously tested your investment bond ideas to ensure all their circumstances are considered

For example, you can show how an investment bond can be used to help someone achieve their goal of early retirement, highlighting how much less tax they would pay compared to a managed fund. The client will also be able to compare investment returns, net of all fees and taxes. You can also exploit the power of Xtools+ to answer questions you may have, such as:

• Will my client get the Commonwealth Seniors Health Card if they use an investment bond?
• Should they use an ‘investment bond in trust’ structure to reduce Aged Care fees?
• Will the health care/aged care savings make up for the additional tax, fees and administration costs?

You can project the balance of up to 20 investment bonds, which can be spread across the Client, Partner, Joint, Trust and Company.

To find out how Xtools+ can help you efficiently build strategy recommendations that most precisely meet your clients’ needs, get in touch.

If you’re an existing Xplan customer, you can find out more about investment bonds in the Iress Community.

Since 1 July 2019, eligible income support pensioners can top their pension up to 150% of the maximum age pension by drawing down a loan that’s secured against their home. Or any other property they own – even if it’s not their home. 

Example: A retiree couple wants to make the most of their healthy retirement years by going on an overseas cruise every year or two.

Should they fund their cruises by:

1.  Increasing the payments from their dwindling account based pension?
2.  Downsizing their home and making a super contribution?
3.  Taking out a reverse mortgage from the bank?
4.  Or should they use the Home Equity Access Scheme (HEAS) to top up their Age Pension with a low interest loan through Centrelink?

When considering HEAS as a strategy option, we understand you might want to explore the answers to these questions: 

•  How much can they borrow through HEAS?
•  How much extra income can they receive?
•  When will they reach their maximum loan amount?
•  How much of their estate will be left to pass onto their children?

The Home Equity Access Scheme (HEAS) is becoming more popular as income-poor retirees look for ways to improve their retirement income and lifestyle. It operates alongside downsizer contributions as a way to access equity from the home, but HEAS recipients can access the equity from their property without having to sell it. 

Iress has seen requests for HEAS modelling increase over the years, ramping up since the scheme's expansion in 2019. Many Australian financial service licensees were cautious about recommending the scheme to their clients without also holding an Australian credit license (ACL) – however, thanks to financial planner Michael Miller, ASIC clarified in December 2022 that planners can advise on HEAS without an ACL. 

How HEAS works

The rules for HEAS  are outlined on the Services Australia website and the Guide to Social Security Law. 

In many ways, the HEAS is similar to a reverse mortgage. HEAS is a loan secured against a property and the interest accumulates with no need to make repayments until the property is sold or the recipient passes away. However, the HEAS is offered through Centrelink, it has a low interest rate compared to most reverse mortgage offerings and it provides less access to lump sum amounts than a reverse mortgage.

The HEAS allows eligible pensioners to draw down a fortnightly loan against their property to top up their income support pension to up to 150% of the maximum age pension. Despite the name of the scheme, any freehold title Australian real assets the pensioner (or their partner) owns can be offered as security – not just the principal home.

The scheme was previously called the Pension Loans Scheme until 1 July 2022.  Prior to 1 July 2019, only those whose pension was reduced by the assets test could access the scheme and the top-up was limited to 100% of the maximum age pension rate. 

From 1 July 2019, the available top-up increased to 150% of the maximum Age Pension, so the scheme became available to self-funded retirees as well as those on income support. Since 1 July 2022, Centrelink allows pensioners to take a lump sum  advance of the next 26 fortnightly payments, up to 50% of the maximum annual rate of pension, and a no negative equity guarantee was also introduced.

To qualify for HEAS, a pensioner or their partner needs to own a property to offer as security and be eligible for the age pension, or be eligible for disability support pension or carer payment if their partner is eligible for the age pension. 

Centrelink calculates the maximum loan that can be drawn down based on the value of the property offered as security, less any existing secured loans. The maximum loan calculation also uses the recipient's age (or their younger partner's age) and the pensioner can set a 'nominated amount,' to be excluded from the property's value when calculating the maximum loan, so more equity can eventually be passed on to beneficiaries. 

The nominated amount is not indexed. The no negative equity guarantee ensures the amount owed on exit from the scheme will not exceed the market value of the property, less any pre-existing non-HEAS encumbrances.

Centrelink accrues compound interest on the HEAS loan each fortnight and the rate is set by the relevant Minister. Since 1 January 2022, the interest rate is 3.95%. 

Now modelled in Xtools+

We introduced HEAS modelling to Xtools+ in Xplan  23.10.292, so: 

• Instead of using Centrelink's calculator to calculate the maximum loan amount, you can use Xtools+
• Instead of working out the difference between the calculated age pension entitlement and 150% of the maximum age pension, you can just get Xtools+ to do it!
• Instead of having to look up the HEAS interest rate, you can rely on Xtools+ legislative data to model the correct rate.

One way to model it is to click on the hyperlinks in the Income Support section. You can also navigate to Input > Liabilities > Home Equity Access Scheme:

You can view the calculations at Display > Individual > Liabilities > Home Equity Access Scheme and the charts can be found at Chart > Liabilities > Home Equity Access Scheme: 

For more details about the Xtools+ modelling, please login to Iress Community and view this article.

As you can probably see from our latest development, Iress is all about empowering financial planners to give excellent advice that helps all sorts of Australians make financial decisions, whether it's about acquiring a financial product or accessing government support. We hope this new feature helps you expedite advice for clients making those decisions, and we’re keen to hear whether it's working for you.

Please feel free to comment below on your own experiences with advice about HEAS. For example, we’d like to know: 

• Do you already provide advice about HEAS? 
• Are you planning to increase advice on HEAS? 
• If not, what’s getting in the way? 

Is this something you’d like to be able to model in Cashflow Visualise? If not, what would you like in its place?