> For the complete documentation index, see [llms.txt](https://docs.scaleconnect.com.au/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.scaleconnect.com.au/scaleconnect-docs/simulator/assumptions-and-events/personal-assumptions.md).
# Personal Assumptions
Assumptions are the ongoing baseline values that run across the personal timeline — salary, living expenses, debts, and other recurring figures. They appear as rows on the timeline, each with a colour-coded bar and a current value. When you change an assumption at a point in time, the new value applies from that date forward and the simulation recalculates everything downstream.
***
## How Assumptions Affect Cashflows
Every assumption feeds directly into the personal cashflow projection. Salary drives income, living expenses and loan repayments drive outgoings, and the net result — combined with tax — determines available savings each month.
These personal cashflows connect to the broader simulation:
* **Personal cashflows** — salary minus expenses, tax, loan repayments, and HECS obligations. This is the layer assumptions primarily affect.
* **Property cashflows** — changes to salary alter the tax benefit of negative gearing on investment properties. Higher income means a smaller marginal tax offset from property losses.
* **Portfolio cashflows** — the combined view. When an assumption changes, all three layers recalculate from that date forward.
{% hint style="info" %}
For complex tax scenarios — how HECS repayment thresholds interact with salary, how negative gearing offsets shift with income changes — ask ScaleAI via **Broker Brain** or the **client assistant** in ScaleApp.
{% endhint %}
***
## Changing an Assumption
Click any assumption row at the month where you want the change to take effect. The form opens with the current value pre-filled. Enter the new value and save — it applies from that date forward.
You can set multiple changes along the timeline. Each change creates a new segment on the row.
***
## Personal Parameters
Two growth settings control how salary and living expenses escalate over time. These are set during client onboarding under **Personal Parameters** and apply across the full timeline.
| Parameter | What it does |
| ------------------------------ | ------------------------------------------------------- |
| Indexed Salary Growth | Compounds salary annually at the rate you set (e.g. 3%) |
| Indexed Living Expenses Growth | Compounds living expenses annually at the rate you set |
Both are toggles. When switched on, a growth rate field appears. When off, the value stays flat. You only need to add a manual assumption change when the value shifts outside normal indexation — a promotion, a lifestyle change, a new debt.
***
## Assumption Types
Seven assumption types are available on the personal timeline.
***
### Gross Annual Salary
The client's pre-tax annual salary, excluding superannuation. This is the primary income driver — it affects tax calculations, HECS compulsory repayment thresholds, negative gearing offsets, and available savings.
If Indexed Salary Growth is enabled, salary escalates automatically each year. Only add a manual change for events outside normal growth — a promotion, a job change, a move to part-time.
***
### Living Expenses
Annual living costs — rent, groceries, insurance, transport, subscriptions, and day-to-day spending. This is the main outgoing that reduces available savings in the personal cashflow.
If Indexed Living Expenses Growth is enabled, expenses escalate automatically. Add a manual change only when expenses shift outside that growth rate — moving to a cheaper area, having a child, retiring.
***
### HECS/HELP Loan
Tracks the client's student debt balance. The simulation automatically calculates compulsory repayments based on income thresholds — you don't need to model those.
Use this assumption for two things: **Add** to record a new HECS debt (e.g. further study), or **Repay** for voluntary repayments above the compulsory threshold. The form shows the outstanding balance at the selected date.
{% hint style="info" %}
Compulsory HECS repayments are calculated automatically by the simulation engine based on income. This assumption is for voluntary balance changes only.
{% endhint %}
***
### Side Hustle Income
Sole trader, freelance, or contract income where PAYG tax is not withheld by an employer. This income is added to the client's total assessable income and tax is settled at the end of the financial year.
Set the monthly amount and the date it starts. If the income changes, add a new value at the relevant month.
***
### Recurring Bonuses
Regular bonus or commission payments the client expects on an ongoing basis — a quarterly sales commission, an annual performance bonus, or a regular dividend distribution.
{% hint style="info" %}
Use **Recurring Bonuses** for ongoing payments. For a single one-off payment, use the [Bonus / Commission](/scaleconnect-docs/simulator/assumptions-and-events/personal-events-1.md#bonus--commission) timeline event instead.
{% endhint %}
***
### Dependants
The number of dependants for tax calculation purposes. Uses a stepper from 0 to 20.
Click the row at a future date to change the count — when a child is born, when a dependant becomes independent, or when circumstances change. No frequency setting — the count is a point-in-time value.
***
### Personal Loans
The total monthly repayment amount across personal loans not modelled individually as timeline events. This is a summary figure for existing obligations that don't need detailed amortisation modelling.
{% hint style="info" %}
For detailed loan modelling with interest rates, terms, and amortisation schedules, use the [Personal Loan](/scaleconnect-docs/simulator/assumptions-and-events/personal-events-1.md#personal-loan) or [Car Loan](/scaleconnect-docs/simulator/assumptions-and-events/personal-events-1.md#car-loan) timeline events instead.
{% endhint %}
***
Can I change an assumption multiple times along the timeline?
Yes. Click the assumption row at each date where the value changes. Each change creates a new segment — the simulation uses the appropriate value for each period.
What's the difference between an assumption and an event?
Assumptions are ongoing baseline values (salary, expenses, debts) that run continuously as rows across the timeline. Events are discrete, one-off actions (a bonus payment, taking out a car loan, selling shares). See [Personal Events](/scaleconnect-docs/simulator/assumptions-and-events/personal-events-1.md) for the full list.
Do I need to add salary changes if indexed growth is on?
Only for changes outside normal growth — a promotion, a new job, or a move to part-time. The indexed growth handles normal annual increases automatically.
---
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