Assumptions

Salary increases and inflation

• Salary increases according to the inflation rate determined by the user. This rate is also used as AWOTE to index legislative limits.
• The Consumer Price Index (CPI) is probably the most commonly used statistic in the calculation of inflation. In recent years, CPI has been between 2% and 4%.

Contributions

• Any contributions you make in excess of the contributions cap will be taxed at the highest marginal tax rate. The contributions cap is $25,000 per year for salary sacrifice (concessional) contributions, and $150,000 per year for post-tax (non-concessional) contributions. For those who are over age 50, the concessional contributions cap is $50,000 until 30 June 2012.
• Pre-tax contributions are made quarterly.
• Post-tax contributions are made annually and at the end of the year.
• For co-contribution purposes, this calculator assumes that your salary is your only source of income, that you have no reportable fringe benefits and that you meet all other eligibility criteria.
• Co-contribution amounts are received at the end of the year to which they apply.
• This calculator allows for a maximum government co-contribution of $1,500. The maximum in the 2009/2010 financial year is $1,000, however this will revert to $1,500 in 2014.

Premiums and fees

• Insurance premiums and annual member fees are reduced by 15% due to the ability to claim a tax deduction. No other fees are assumed to be tax deductible.
• All fees remain the same throughout the accumulation stage and are not indexed in line with inflation.
• Except for the contribution fee, fees are deducted from the current super account balance.

Tax

• The investment tax rate for the accumulation stage of 15% is not reduced by dividend imputations or any other tax credits, rebates or offsets
• The calculations are inclusive of contributions tax.

Income

• The figures generated for "How much income do you want to receive each year after you retire?" assume no fees are charged and that no tax is charged on earnings during the income stream stage.
• The benefit calculated is the estimated dollar amount at retirement, converted into today's dollars. Today's dollars means that we have converted your benefit into its equivalent value today (after considering the effect of inflation which you determine). We do this so you can make a sound comparison on what your benefit could buy you today.

Investments and investment earnings

• Investment earnings are gross of fees and tax.
• Your superannuation assets are invested in the same option over your entire life expectancy.

Life expectancy

• Your life expectancy, which is based on the 2000-2002 Australian Life Tables, is calculated using date of birth as the starting reference.