Salary Sacrifice

Important information about this calculator.

This calculator compares the difference between making a salary sacrifice contribution to superannuation and a post tax contribution to superannuation.

Assumptions
1. The investment is held for 1 year and withdrawn after age 55.
2. Contributions are made within 12 months of the 55th birthday and withdrawal after the 55th birthday.
3. Income is for superannuation purposes only. All other income you may receive is ignored.
4. Savings increase each year with an investment rate (net of tax) at a default rate of 5.75% pa (ie. 3.25% pa above assumed inflation). The default rate of 5.75% p.a. is equivalent to the current cash target of the RBA. You may change the default rate.
5. The default inflation rate is 2.5%. This is the mid-point of the RBA target range for inflation.
6. Interest is calculated daily and compounded on 1 July each year.
7. Government co-contribution rate is effective from 1 July 2005. This has been based on the Salary income and post tax contributions entered.
8. Contribution tax of 15% is applied to all employer and salary sacrifice contributions.
9. PAYG tax is calculated using the personal marginal income tax rates plus Medicare levy effective from 1 July 2006 with a tax threshold and no leave loading. The PAYG tax calculation does not take into account the Low Income Tax Offset calculation. The Medicare levy surcharge has not been included in this calculator. When calculating Marginal Tax Rates it assumes no other income from other sources.
10. The tax on investment earnings is calculated using marginal tax rates plus medicare levy effective from 1 July 2006 with a tax free threshold and no leave loading.
11. The medicare levy of 1.5% is used and does not take into account low income for singles or families.
12. The medicare levy surcharge has not been included in this calculator.
13. Tax on investment upon withdrawal is effective from 1 July 2006 and includes the medicare levy.
14. Tax on superannuation investments including contributions tax and tax on earnings are effective from 1 July 2006.
15. No consideration has been given to the post 83 Tax Free Threshold.
16. No consideration has been given to your eligibility for the Pensioner Tax Offset, Senior Australian Tax Offset or Low Income Tax Offset.
17. The comparison is between post-tax and salary sacrifice contributions which are made to a complying superannuation fund.
18. No consideration has been given to the age based limits for deductibility of superannuation contributions.
If these assumptions are different to your situation the calculations will not be correct.
Disclaimer
1. This "Lump sum salary sacrifice comparison" calculator is based on our interpretation of tax laws as at 1 July 2006.
2. This "Lump sum salary sacrifice comparison" calculator does not replace personal financial product advice and you should seek specific professional advice prior to acting on any information.
3. ClearView gives no assurance that this "Lump sum salary sacrifice comparison" calculator is free of errors or suitable for any user's intended purposes.
4. To the extent permitted by law, ClearView will not be liable for any damages or loss suffered by the user or anyone else from use of this "Lump sum salary sacrifice comparison" calculator.
5. Any advice in this "Lump sum salary sacrifice comparison" calculator is general advice only and does not take into account your individual objectives, financial situation or needs ("personal circumstances"). Before acting on it you should consider the appropriateness of it, taking into account your personal circumstances. ClearView Financial Advisers are representatives of ClearView Financial Management Limited.