@novha/calc-engines 1.7.2 → 2.0.0

package/test/australia-income-tax.test.ts

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+import { AustraliaIncomeTaxServiceImpl } from '../src/income-tax/australia/AustraliaIncomeTaxServiceImpl';
+import { IncomeTaxRules } from '../src/income-tax/australia/domain/types';
+
+// Australia 2024-25 tax rules (Stage 3 tax cuts)
+const australiaRules: IncomeTaxRules = {
+    taxBrackets: [
+        { from: 0, to: 18200, rate: 0 },
+        { from: 18200, to: 45000, rate: 0.19 },
+        { from: 45000, to: 120000, rate: 0.325 },
+        { from: 120000, to: 180000, rate: 0.37 },
+        { from: 180000, to: null, rate: 0.45 },
+    ],
+    medicareLevy: {
+        rate: 0.02,
+        shadingInThreshold: 26000,
+        fullLevyThreshold: 32500,
+        reductionRate: 0.1,
+    },
+    lowIncomeTaxOffset: {
+        maxOffset: 700,
+        phaseOutStart: 37500,
+        phaseOutEnd: 45000,
+        phaseOutRate: 0.05,
+    },
+};
+
+describe('AustraliaIncomeTaxServiceImpl', () => {
+    it('returns zero tax for income below the tax-free threshold', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(18200, australiaRules);
+        const result = service.calculateNetIncome();
+
+        expect(result.incomeTax).toBe(0);
+        expect(result.grossIncome).toBe(18200);
+        expect(result.netIncome).toBe(result.grossIncome - result.totalDeductions);
+    });
+
+    it('correctly calculates income tax for $60,000 income', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(60000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // Bracket 1: 0 → 18200 @ 0% = 0
+        // Bracket 2: 18200 → 45000 @ 19% = 5092
+        // Bracket 3: 45000 → 60000 @ 32.5% = 4875
+        // Gross tax = 9967
+        // LITO: income (60000) > phaseOutEnd (45000) → offset = 0
+        // Net income tax = 9967
+        expect(result.incomeTax).toBe(9967);
+        expect(result.grossIncome).toBe(60000);
+    });
+
+    it('applies the Low Income Tax Offset for low incomes', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(30000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // Bracket 2: 18200 → 30000 @ 19% = 2242
+        // LITO: income 30000 <= 37500 → max offset 700
+        // Net tax = max(0, 2242 - 700) = 1542
+        expect(result.lowIncomeTaxOffset).toBe(700);
+        expect(result.incomeTax).toBe(1542);
+    });
+
+    it('partially phases out LITO between $37,500 and $45,000', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(40000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // Gross tax: 18200→40000 @ 19% = 3382
+        // LITO: 700 - (40000 - 37500) * 0.05 = 700 - 125 = 575
+        expect(result.lowIncomeTaxOffset).toBe(575);
+    });
+
+    it('applies Medicare Levy correctly', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(60000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // Medicare Levy: 60000 * 2% = 1200
+        expect(result.medicareLevy).toBe(1200);
+    });
+
+    it('applies shading-in Medicare Levy for income in the shading-in range', () => {
+        const income = 28000;
+        const service = new AustraliaIncomeTaxServiceImpl(income, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // income (28000) > shadingInThreshold (26000), < fullLevyThreshold (32500)
+        // levy = (28000 - 26000) * 0.1 = 200
+        expect(result.medicareLevy).toBe(200);
+    });
+
+    it('returns zero Medicare Levy below shading-in threshold', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(25000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        expect(result.medicareLevy).toBe(0);
+    });
+
+    it('calculates high income tax correctly', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(200000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        // Bracket 1: 0→18200 @ 0% = 0
+        // Bracket 2: 18200→45000 @ 19% = 5092
+        // Bracket 3: 45000→120000 @ 32.5% = 24375
+        // Bracket 4: 120000→180000 @ 37% = 22200
+        // Bracket 5: 180000→200000 @ 45% = 9000
+        // Gross tax = 60667
+        // LITO: 0 (income > 45000)
+        // Net income tax = 60667
+        expect(result.incomeTax).toBe(60667);
+        expect(result.medicareLevy).toBe(4000); // 200000 * 2%
+    });
+
+    it('net income equals gross income minus total deductions', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(80000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        expect(result.netIncome).toBeCloseTo(
+            result.grossIncome - result.totalDeductions,
+            2,
+        );
+    });
+
+    it('effective tax rate is income tax divided by gross income', () => {
+        const service = new AustraliaIncomeTaxServiceImpl(100000, australiaRules);
+        const result = service.calculateNetIncome();
+
+        expect(result.effectiveTaxRate).toBeCloseTo(result.incomeTax / result.grossIncome, 4);
+    });
+});

package/test/australia-mortgage.test.ts

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+import { AustraliaMortgageServiceImpl } from '../src/mortgage/australia/AustraliaMortgageServiceImpl';
+import { MortgageInput, MortgageRules } from '../src/mortgage/australia/domain/types';
+
+const australiaMortgageRules: MortgageRules = {
+    loanConstraints: {
+        maxLvr: 0.95,
+        maxAmortizationYears: 30,
+    },
+    lendersMortgageInsurance: {
+        requiredAboveLvr: 0.8,
+        premiumRates: [
+            { maxLvr: 0.85, rate: 0.006 },
+            { maxLvr: 0.90, rate: 0.012 },
+            { maxLvr: 0.95, rate: 0.022 },
+        ],
+        premiumAddedToLoan: true,
+    },
+    interest: {
+        compounding: 'MONTHLY',
+    },
+    stampDuty: {
+        brackets: [
+            { upTo: 14000, rate: 0.014 },
+            { upTo: 32000, rate: 0.035 },
+            { upTo: 85000, rate: 0.045 },
+            { upTo: 319000, rate: 0.0475 },
+            { upTo: 1000000, rate: 0.05 },
+            { above: 1000000, rate: 0.055 },
+        ],
+    },
+};
+
+const defaultInput: MortgageInput = {
+    propertyPrice: 600000,
+    downPayment: 120000, // 20% down, LVR = 80%
+    annualInterestRate: 6.0,
+    amortizationYears: 30,
+    paymentFrequency: 'MONTHLY',
+};
+
+describe('AustraliaMortgageServiceImpl', () => {
+    const service = new AustraliaMortgageServiceImpl();
+
+    it('calculates loan amount correctly', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        expect(result.loanAmount).toBe(480000);
+    });
+
+    it('does not apply LMI when LVR is exactly 80%', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        expect(result.lmiPremium).toBe(0);
+        expect(result.totalMortgage).toBe(480000);
+    });
+
+    it('applies LMI when LVR exceeds 80%', () => {
+        const input: MortgageInput = {
+            ...defaultInput,
+            downPayment: 60000, // 10% down, LVR = 90%
+        };
+        const result = service.calculate(input, australiaMortgageRules);
+
+        // LVR = 540000 / 600000 = 90%, rate = 1.2%
+        expect(result.lmiPremium).toBe(540000 * 0.012);
+        expect(result.totalMortgage).toBe(540000 + 540000 * 0.012);
+    });
+
+    it('calculates monthly payment for standard mortgage', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        // Standard amortization formula
+        const r = 0.06 / 12;
+        const n = 30 * 12;
+        const expected = 480000 * (r * Math.pow(1 + r, n)) / (Math.pow(1 + r, n) - 1);
+        expect(result.monthlyPayment).toBeCloseTo(expected, 2);
+    });
+
+    it('totalPaid = monthlyPayment * totalPayments', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+        const totalPayments = 30 * 12;
+
+        expect(result.totalPaid).toBeCloseTo(result.monthlyPayment * totalPayments, 0);
+    });
+
+    it('calculates stamp duty', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        // stamp duty for 600000: falls in upTo: 1000000 bracket
+        expect(result.stampDuty).toBeGreaterThan(0);
+    });
+
+    it('throws error when loan amount is zero or negative', () => {
+        const input: MortgageInput = {
+            ...defaultInput,
+            downPayment: 600000,
+        };
+
+        expect(() => service.calculate(input, australiaMortgageRules)).toThrow('Invalid loan amount');
+    });
+
+    it('generates amortization schedule', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        expect(result.amortizationSchedule.length).toBe(30);
+        expect(result.amortizationSchedule[0].year).toBe(1);
+        expect(result.amortizationSchedule[29].balance).toBeCloseTo(0, 0);
+    });
+
+    it('amortization schedule balance decreases over time', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+        const schedule = result.amortizationSchedule;
+
+        for (let i = 1; i < schedule.length; i++) {
+            expect(schedule[i].balance).toBeLessThan(schedule[i - 1].balance);
+        }
+    });
+
+    it('otherFees includes stamp duty and LMI', () => {
+        const result = service.calculate(defaultInput, australiaMortgageRules);
+
+        expect(result.otherFees.notaryFees.label).toBe('STAMP_DUTY');
+        expect(result.otherFees.monthlyInsuranceFees.label).toBe('LMI_PREMIUM');
+    });
+});

package/tsconfig.test.json

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+{
+  "extends": "./tsconfig.json",
+  "compilerOptions": {
+    "rootDir": ".",
+    "outDir": "./dist-test"
+  },
+  "include": ["src/**/*", "test/**/*"],
+  "exclude": ["node_modules", "cdk.out"]
+}