Notes & Assumptions
The results produced by this calculator are based on various underlying assumptions. You can change the value of the following important assumptions. For more detail, please see the notes below.
The calculations in this calculator are valid for the 2016/17 financial
No allowance has been made for any changes proposed in the 2015/16 Federal
Budget that have not been legislated as of 1 July 2016.
For the purposes of determining income tax, contribution limits and minimum
and maximum pension withdrawal amounts, it is assumed that the projection
is run on the first day of the financial year and that you are your current
age for the entire financial year. The calculator projects your superannuation
balance over a whole number of years.
It is assumed you have provided your tax file number to your superannuation
fund. This calculator is not appropriate for members of an untaxed fund.
The results are a projection only and are not guaranteed.
General wage inflation
By default, wages are assumed to increase by 3.5% p.a. in each year. All
results are expressed in today's dollars by discounting at this rate. You
can change the assumed rate at the top of this page.
The default assumption is set at 1% above the mid-point of the Reserve
Bank of Australia's 2-3% p.a. target range for price inflation. This is
consistent with the average historic difference between wage and price
inflation in Australia over the last 30 years as measured by increases
in Average Weekly Ordinary Time Earnings and the Consumer Price Index respectively.
Salary refers to your taxable salary income. This usually means your regular gross pay,
but commissions or other allowances may need to be included depending on your own particular
circumstances. It is assumed your salary increases each projection year in line with the assumed
level of general wage inflation. Income tax is calculated by applying personal income tax rates plus
the Medicare Levy (but not the Medicare Levy Surcharge) to your projected taxable income in each
projection year. The personal income tax rates used for the 2015/16, 2016/17
and 2017/18 projection years are the legislated tax rates for those years as at 1 July 2016.
In each projected year subsequent to 2017/18, the personal income tax brackets (and Medicare Levy thresholds)
are assumed to increase in line with the assumed level of general wage inflation, and the personal
income tax rates are assumed to remain unchanged. The temporary budget repair levy of 2% on the part
of a personís taxable income which exceeds $180,000 is assumed to apply for the 2015/16 and
2016/17 financial years. You are assumed to be an Australian resident for taxation purposes. In
calculating the Medicare Levy, the individual income thresholds are assumed to apply, and the
family income thresholds are assumed not to apply. No allowance is made for the Mature Age Worker Tax Offset.
The Medicare Levy is assumed to be 2% of taxable income for the 2016/17 tax year and subsequent years.
In each projection year, your entitlement for the Low Income Tax Offset
(LITO) is estimated based on your taxable income. The rates and thresholds
used to calculate LITO in the 2016/17 projection
year are assumed to be the legislated rates and thresholds for those years
as at 1 July 2016. The maximum amount of LITO and the income threshold
over which the LITO starts to reduce are assumed to increase in each year
subsequent to 2016/17 in line with the assumed level of general wage inflation.
In each projection year in which you are determined to be eligible for
an Age Pension, your entitlement for the Seniors and Pensioners Tax Offset
(SAPTO) is estimated based on your rebatable income. Your rebatable income
is assumed to equal your taxable income plus any salary sacrifice contributions.
The maximum amount of SAPTO is assumed to increase each year in line with
the assumed level of general wage inflation.
If you indicate you work part-time while taking a break from full-time
work, it is assumed your gross salary and superannuation contributions
during the part-time period are the same proportion of your full-time gross
salary and superannuation contributions as your part-time work bears to
your full-time work.
Employer contributions include all concessional contributions made by
your employer other than salary sacrifice contributions.
By default it is assumed you receive employer contributions of 9.5 percent
of salary, subject to a maximum of the concessional contribution limit.
You can change the assumed employer contribution rate. By default, in each
projection year, your Superannuation Guarantee (SG) entitlement is estimated
and your employer's contribution is increased to your estimated SG entitlement
if below this entitlement. You can disable this functionality. Your SG
entitlement is calculated in each projection year by multiplying the SG
charge rate assumed to apply in that year by an income base. By default,
the income base is your projected salary (before tax), but you can elect
to cap this at the SG Maximum Contribution Base, by changing the "Apply
SG Maximum Superannuation Contribution Base?" setting.
The SG charge rates assumed to apply in each year are as follows:
Year to 30 June
Superannuation guarantee charge rate %
2026 and thereafter
In addition you should enter your current level of after-tax (non-concessional)
and salary sacrifice (concessional) contributions. It is assumed that your
employer contributions are not affected by any salary sacrifice contributions.
Any contributions entered by you (both employer and personal contributions)
are assumed to increase in each projection year in line with your salary.
Where a calculated contribution amount exceeds the relevant contribution
limit, the assumed contribution is reduced to that limit to ensure the
contribution is not excessive. If the calculated excess contribution is
concessional, an additional non-concessional contribution is assumed to
be made so that your calculated take-home pay is the same as would have
been the case if the full calculated excess concessional contribution had
The concessional and non-concessional contributions limits of $30,000 and
$180,000 respectively are subject to indexation. Allowance is made for the
higher concessional contributions cap of $35,000 (not indexed) applying from
1 July 2015 for individuals aged 50 and over on 30 June 2016. Contributions are
assumed to be spread evenly across the year on a monthly basis.
Contributions are assumed to be spread evenly across each projection year
on a monthly basis and are to be paid until the retirement age you enter.
The calculator assumes that the maximum amount of non-concessional contribution
each year is subject to a maximum of your annual take home pay (net of
tax and any salary sacrifice contributions).
Concessional contributions are assumed to be subject to tax at 30% in the super
fund for individuals with income including concessional contributions over
$300,000, and at 15% otherwise. Where an individualís income exceeds $300,000
a year due to the inclusion of their concessional contributions, the higher tax
rate of 30% is assumed to apply to the excess over $300,000, with 15% applying
to the balance of concessional contributions.
For each projection year in which it is assumed you would make an after-tax
(non-concessional) contribution, your co-contribution eligibility is assessed
and a co-contribution is added to the projected superannuation account
Your eligibility is assessed by comparing the projected "relevant income"
amount to the co-contribution thresholds, and applying the standard rules
for calculating the co-contribution. The "relevant income" amount is assumed
to be your taxable income plus salary sacrifice contributions (the actual
co-contribution income test also includes other amounts).
It is assumed you meet the other co-contribution eligibility criteria.
The lower co-contribution threshold is assumed to increase in line with
the assumed level of general wage inflation each year. The co-contribution
matching rate is assumed to be 50c per dollar contributed and the maximum
co-contribution is assumed to be $500. The upper co-contribution threshold
is assumed to be $15,000 more than the lower co-contribution threshold.
As assumptions have been made about your eligibility for the co-contribution,
including your "relevant income", the projected co-contribution may not
represent your actual co-contribution entitlement.
Any co-contribution payable is added to your projected superannuation
account on 30 June in the respective projection year.
Low income superannuation contribution (LISC)
For each projection year prior to 2017 in which it is assumed you or your employer would
make a concessional contribution, your eligibility for the LISC is assessed
and a LISC is added to the projected superannuation account if applicable.
In each case, your eligibility is assessed by comparing your calculated
assessable income amount plus salary sacrifice contributions in the relevant
year to the estimated LISC income threshold in that year, and applying
the standard rules for calculating the LISC. It is assumed you have no
reportable fringe benefits.
It is assumed you meet the other LISC eligibility criteria.
The LISC income threshold and maximum payment amount are assumed to remain
constant over the projection period until 30 June 2017.
Any LISC payable is added to your projected superannuation account on
30 June in the respective projection year.
In line with legislation as at 1 July 2015, it is assumed that the
LISC will not be payable in respect of concessional contributions made on or after 1 July 2017.
The calculator assumes the following investment returns for each investment
Investment returns for each investment strategy
||Proportion invested in growth assets *
||Investment return in superannuation account†
||Investment return in pension account‡
* This shows the proportion invested in growth assets such as shares and property. The remaining assets are assumed to be invested in defensive assets such as fixed interest and cash. Growth assets are generally expected to provide higher investment returns over the long term than defensive assets, but can be susceptible to greater variation in investment returns in the short term.
† The superannuation account returns shown are % p.a., after investment management fees and tax.
‡ The pension account returns shown are % p.a., after investment management fees, nil tax.
The investment returns you select with the sliders on the Results page
are assumed to be "After Fees and Tax". This means after investment management
fees and tax levied within a superannuation fund on investment gains only.
It does not take into account other taxes such as those payable upon withdrawal
of a benefit.
The assumed investment returns are illustrative and should not be taken
to be an estimate of the amount of investment earnings you may receive.
Investment returns are assumed to remain constant over the projection period.
Fees and insurance premiums
The "Investment returns" section above includes an implicit allowance
for investment management fees assumed to apply to each investment strategy.
The following additional default fees and insurance premiums are assumed
to apply. You can change the assumed fees and insurance premiums at the
top of this page.
$52 per year
$52 per year
Contribution fee (% of contributions)
0% per year
$156 per year
Fees are assumed to be tax-deductible at 15% in the fund.
Fees and insurance premiums are assumed to be deducted on a monthly basis.
Advice fees are assumed to be nil but they can be incorporated into the
calculation by adjusting the administration fee to reflect any advice fees.
Dollar fees and insurance premiums are assumed to increase in line with
the assumed level of general wage inflation. Other fees are assumed to
remain constant in percentage terms over the projection period.
It is assumed you will retire at the end of the financial year in which
you reach your nominated retirement age.
It is assumed you will have reached your preservation age or will have
met a relevant condition of release as at your nominated retirement date.
If this is not the case, you will not be able to access your superannuation
benefits until after you have reached your preservation age or satisfied
a relevant condition of release. You should check your preservation age
before using the calculator.
By default, the after-tax income in retirement you need is set to a comfortable
lifestyle according to the ASFA Retirement Standard. You can change the
assumed level of retirement income needs on the Results page.
It is assumed you will commence an account-based pension with your superannuation
savings balance at the time of full retirement. Pension withdrawals are
assumed to be made on a monthly basis.
Pension withdrawals after age 60 are assumed to be tax-free. For the purpose
of calculating taxation on pension withdrawals before age 60, the pension
is assumed to commence after 1 July 2007 and hence the proportioning rule
applies which divides the pension income into a tax-free and taxable component.
Your Age Pension amount is estimated in each projection year from your
retirement age and added to the projection. If you have indicated you have
a partner, you are assumed to be a couple for Age Pension purposes; otherwise,
you are assumed to be single for Age Pension purposes. Your Age Pension
amount is assumed to be subject to the income test reduction rate of 50c
per dollar over the threshold. It is assumed you have no assets or income
(other than the amounts shown in the calculator) which affect your Age
Pension payment. The Age Pension payment is assumed to be included in your
assessable income for taxation purposes.
Your salary is assumed to be included in the income
test. In assessing your income for the income test, the Work Bonus is assumed
to apply to salary income.
It is assumed that any pensions commence on or after 1 January 2015, and that the assumed
income from the account based pension for purposes of the income test is based on the standard deeming rules.
Your pension account balance is assumed to be included in the assets test.
The income test and assets test thresholds are assumed to be indexed at
the end of each projection year in line with the assumed level of general
wage inflation. For the projection year from 1 July 2016 to 30 June 2017 and
subsequent years, it is assumed that the legislated changes to the assets test
threshold and taper rate from 1 January 2017 are applied for the full projection year.
For the purpose of estimating your Age Pension entitlement, you are assumed
to be a homeowner by default, but you can change this at the top of this
page. You are assumed to meet all other criteria used when assessing your
Age Pension eligibility.
The Australian Life Tables 2010-12 are used as a basis for illustrating
how long individuals could be expected to live, as well as for determining
your life expectancy for taxation purposes.
Life expectancy indicators are rounded up to whole numbers of years.