Notes and assumptions

The information in the calculator is based on our current understanding of tax and superannuation laws as they currently apply to SSS. The income tax threshold changes announced in the 2019 Federal Budget are not allowed for in this calculator.

Salary sacrifice

The calculation assumes:

  • your employer allows you to make salary sacrifice contributions
  • that your taxable income will reduce by the amount of salary sacrifice contributions where these are made
  • PAYG tax is calculated using marginal tax rates and thresholds for the 2020-21 financial year
  • you are permitted to make after-tax contributions (i.e. your previous total super balance as at 30 June is less than the transfer balance cap)

The salary sacrifice contributions shown in the 'Your results' section have been increased for tax so that the same net amount goes into your SSS personal account as would be the case if the contributions were made from your after-tax salary (i.e. your contributions are increased to allow for the 15% contributions tax that is deducted from salary sacrifice amounts).

Generally, no tax is payable on a superannuation benefit paid to you if you are over the age of 60. However, if you are under the age of 60 when you are paid your superannuation benefit, you are generally liable to pay tax at special rates on that benefit. The part of the benefit that consists of your after-tax contributions is not subject to tax (although tax may apply to any growth in your benefit for example, due to investment income on your contributions). However the part of the benefit that represents your salary sacrifice contributions may be subject to tax.

Contributions cap

There are significant taxation penalties if your contributions to superannuation exceed certain limits. In broad terms these limits for the 2020-21 financial year are:

  • $25,000 for concessional (or pre-tax or salary sacrifice) contributions
  • $100,000 for non-concessional (i.e. after-tax) contributions in 2020-21
  • if you are under 65 you can make up to $300,000 non-concessional contributions in one year (but your non-concessional contributions will be limited in the next two years so that no more than $300,000 is contributed over the three years) unless you have exceeded the limit in either of the previous two years

You won't be able to make any non-concessional contributions if your total super balance as at 30 June the previous year exceeded the transfer balance cap (currently $1.6 million).

The calculation assumes that you have not exceeded the above limits. In some instances the calculator will prompt you or constrain you about your input contribution levels, but the responsibility not to exceed the limit is yours.

Commonwealth Government co-contribution assumptions

The calculation assumes you have met the eligibility criteria for the Commonwealth Government co-contribution.

Commonwealth Government co-contribution rates used are for the 2020-21 financial year (that is, a matching rate of 50%, the total income* at which the co-contribution ceases is $54,837 and a maximum co-contribution of $500).

The calculation also assumes your reportable employer superannuation contributions (other than any nominated salary sacrifice contributions) are nil and your deductible personal contributions are nil.

*Total income means assessable income, plus reportable fringe benefits, plus reportable employer superannuation contributions (salary sacrifice contributions).

If your actual situation differs from the above assumptions, then the calculations may not be accurate.