Calculators

Prior to retirement my wife and I met with a VicSuper representative to discuss our options. Despite the fact that some of the concepts and strategies can appear complex at first, things were explained to us in a way that was really simple and easy to understand, which helped us feel comfortable with the decisions we made.

Ken and Linda
VicSuper members

Salary sacrifice calculator

How this calculator works

  • In calculating the Government co-contribution the calculator takes into account the amounts entered as salary, other income and personal contributions.
  • Eligibility for the Government co-contribution is based on the following:
    • have total income less than $46,920 pa
      for every dollar made as a personal contribution the government will contribute 50 cents to a maximum of $500
    • the maximum co-contribution reduces by $0.03333 for every dollar of total income the user earns above $31,920.
    • The Government co-contribution amounts stated in this calculator are based on changes which have been proposed by the Government. These changes have not yet been legislated.
  • Amounts in excess of the superannuation contribution caps are not permitted by the calculator so the tax rates for these amounts are not included. The current contribution caps to superannuation are as follows: 
    • The non-concessional contribution (eg personal contributions) cap is $150,000 pa, or if you are under 65, $450,000 over three years. For the purpose of this calculator amounts in excess of $150,000 are not allowed.
    • The concessional contribution (eg salary sacrifice and Superannuation Guarantee contributions) limit is $25,000 pa. For the purpose of this calculator amounts in excess of $25,000 pa are not allowed.
    • If your total adjusted taxable income is less than $37,000 you may be entitled to the Government low income superannuation (LISC) offset which is based on refunding the 15% contributions tax on your total concessional contributions up to a maximum of $500. This refund has not been included in this calculator.
  • Income tax rates current as at 1 July 2012 are used for the calculator. The Medicare levy of 1.5% is included within tax calculations. The Medicare surcharge is not included within tax calculations.
  • Salaries in excess of the limit for mandatory SG contributions, which is $183,000 pa, are assumed to receive 9% SG contributions for the whole salary.
  • The low income tax offset (LITO) is included within the tax calculation but there is no allowance for any other tax offsets on income.
  • Tax thresholds and rates from 1 July 2012:
    Income thresholds ($)Tax rate (%)
    0 - 18,2000
    18,201 - 37,000 19
    37,001 - 80,00032.5
    80,001 - 180,00037
    180,001+45
  • Taxation is only one of the matters that must be considered when making a decision on a financial product.
  • 'Net position' refers to net income plus the total amount of super you will have saved in a single financial year using the contributions you indicate in this calculator.
  • 'Net income (take-home pay)' refers to your salary plus other income, less any tax, salary sacrifice contributions and personal contributions.

 

Assumptions for this calculator

  • All assumptions are based on statutory rates.
  • The SG rate is assumed to be 9% unless the user enters a different figure.
  • Contributions tax of 15% applies to all SG and salary sacrifice contributions. Personal contributions are not taxed.
  • The Government co-contribution, if received, is not taxed.

Basis for assumptions

VicSuper has created this calculator based on legislation current as at November 2012. VicSuper has engaged professional advisors in formulating the assumptions for this calculator.

Disclaimer

This calculator is a mathematical tool based on limited information and assumptions. The information produced by this calculator is given in good faith and for illustration purposes only. Actual outcomes may differ significantly.


This calculator is not intended to represent financial advice. In particular, decisions must not be made in reliance on the results produced by the calculator. The estimates generated do not take into account all of your personal circumstances and you should obtain professional advice from either a VicSuper superannuation adviser or a licensed financial adviser before making any decisions about your superannuation.


The calculator is based on information and current laws interpreted as at November 2012. However no warranty of accuracy, completeness or reliability is given and no responsibility is accepted for errors or omissions or for loss or damage arising from use of the calculator (including but not limited to responsibility to any person by reason of negligence).

 

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