Super contributions calculator assumptions
Fixed assumptions
The estimates produced by this calculator are based on default assumptions (factors which you may change) and statutory assumptions (rates or amounts fixed by legislation e.g. rates of taxation) which are considered reasonable at the current date based on long-term actuarial modelling. However, actual events can turn out differently. Please note the following:
Statutory rates and rules are current as at 1 July 2023.
The “extra at retirement” results are shown in today’s dollars (present value), which means they are adjusted for an assumed annual inflation rate of 4% between now and your retirement. You can adjust the inflation rate in the “Change assumptions” section to see the impact this will have on the projected amount.
Annual income – annual income is your annual income from employment before tax, including any bonus payments and income that is salary sacrificed. It excludes any employer superannuation contributions and other packaged benefits.
Contributions – the calculator cannot take account past contributions and therefore assumes that you will not exceed your concessional or non-concessional contributions caps. This also means that no allowance has been made for the use of the ‘bring forward’ rule for non-concessional contributions.
This calculator does not consider eligibility for a downsizer superannuation contribution (a one-off post-tax contribution for over 55 year olds of up to $300,000 from the proceeds of selling their home).
Working life – the calculator assumes that you will have a continuous working life with no breaks.
Employer contributions – the calculator assumes your employer makes contributions once a year at 1 January.
LISTO – the calculator assumes that you are eligible for the government Low Income Superannuation Tax Offset (LISTO) if your income is below the relevant threshold. However, other eligibility criteria apply for the LISTO which the calculator does not consider.
Contributions – the calculator works out whether before or after-tax contributions are better for you based on your income tax rates, contributions caps and whether you may qualify for government contributions. The most advantageous combination may change in the future depending on your situation, so you should review this at least annually.
No breach of balance cap rules – the calculator assumes, when providing estimates, that you will not breach the transfer balance cap rules, which apply a limit to the amount you can transfer into the retirement phase.
Superannuation guarantee – the calculator assumes that where a person enters into a salary sacrifice arrangement, their employer will still make the 11% superannuation guarantee payments on their income.
Tax on super contributions – it is assumed that you have provided your tax file number (TFN) to your superannuation fund and that, consequently the usual concessional tax rate of 15% tax is deducted from employer contributions including before-tax (salary sacrifice) contributions. Where applicable an estimate of the Division 293 additional contribution tax for those on incomes over the relevant threshold has been included. The calculator assumes that you will not breach your concessional and non-concessional contributions caps and therefore no allowance is made for any additional tax that may be payable on excess contributions as a result. No allowance is made for any other tax on super. The total income used by the calculator to estimate the applicable Division 293 tax is equal to your annual salary before tax and before any salary sacrifice. Any income from other sources and other available adjustments are not included in an estimate of total income. For the full definition of ‘income’ used by the Australian Taxation Office (ATO) and other details on Division 293 tax and excess contribution rules, refer to the ATO website at ato.gov.au. The tax assumptions used are general in nature only and do not constitute tax advice. Please see your tax adviser for advice that is specific to your individual circumstances.
Tax on current income – the calculator works out the income tax payable on the current income you have entered by applying the current financial year’s personal income tax rates and the Medicare levy where it applies based on the individual thresholds. The actual Medicare levy may be different than calculated. Any other form of income you receive has not been taken into account. No allowance has been made for the Medicare Levy Surcharge.
You are assumed to be an Australian resident for tax purposes.
From 1 July 2025, an additional tax of 15% will apply to earnings if your total superannuation balance exceeds $3million.