| ||The Government co-contribution has been calculated using rules in place as at 30 June 2012. The Government has proposed a reduction in the matching co-contribution (from $1 to $0.50 per $1 contributed after-tax to a maximum of $500 per income tax year) and maximum income threshold (from $61,920 to $46,920). This proposal has not yet been passed, but if passed, will apply retrospectively from 1 July 2012.|| |
| ||1.||The information and calculations provided by the calculator are provided for educational and information purposes only as a general guide only. This calculator is prepared by AMP Life Limited ABN 84 079 300 379 AFSL 233671 to assist you in considering your contribution arrangements and are not intended to be kept or used for any practicable purpose. It generates factual information illustrating different types and amounts of contributions on your take-home pay.|| |
| ||2.||Tax and superannuation laws are complex. This calculator is based on our current understanding of those tax and superannuation laws effective as at July 2012.|| |
| ||3.||The results from the calculator rely on your inputs, and the assumptions which are outlined below. While AMP Life Limited believes these assumptions to be reasonable, some may not apply to you. Actual outcomes will depend on a range of factors which are not necessarily taken into account by the calculator.|| |
| ||4.||Reasonable care has been taken in preparing this calculator. However, if there is any inconsistency between the assumptions for the Calculator and the law, the law will prevail.|| |
| ||5.||Superannuation guarantee contributions are payable on salary or wages up the maximum contributions base, which is $45,750 per quarter for the 2012/13 year. However, this calculator does not take into account the maximum contributions base. Accordingly, the calculator should not be used if your Before-tax salary (before any salary sacrifice contributions) is greater than $183,000 in the 2012/13 year.|| |
| ||6.||The calculator assumes that you are a member of an accumulation fund. It should not be used if you are a member of a defined benefit fund.|| |
| ||1.||You should check with your employer to determine if you are eligible to salary sacrifice superannuation contributions. Further, certain conditions must be satisfied in order to enter into an effective salary sacrifice arrangement with your employer. This calculator assumes that you have satisfied the conditions for an effective salary sacrifice arrangement from 1 July 2012.|| |
| ||2.||Taxable income has been calculated assuming that your only assessable income is your annual salary, and assuming that you have no deductions.|| |
| ||3.||Income Tax is calculated using the personal marginal income tax rates plus Medicare levy effective from 1 July 2012, with a tax threshold and no leave loading. The Income Tax calculation takes into account the Low Income Tax Offset calculation effective 1 July 2012. Other tax factors such as the Medicare levy surcharge, Mature Age Workers Tax Offset and Senior Australians Tax Offset have not been included in this calculator.|| |
| ||4.||The calculator only considers annual, monthly, weekly or fortnightly salary. Any income you may have received from other sources has been ignored.|| |
| ||5.||Your Tax File Number has been provided to the superannuation fund. If this is not the case, an additional 31.5% tax is payable on your Employer SG contributions and salary sacrifice contributions (although this may be able to be refunded if you supply your TFN within four years). Further, the super fund will not be able to accept your after-tax contributions (which will effect your entitlement to Government co contributions).|| |
| ||6.||The Employer SG contributions amount is calculated as 9% of your Before-Tax salary (ignoring any salary sacrifice contributions). Note that employers are not obliged to pay SG contributions from age 70.|| |
| ||7.||The assessable income of a superannuation fund includes employer contributions and salary sacrifice contributions. These contributions are taxed at the rate that applies to complying superannuation funds (currently up to 15%). This calculator assumes an effective rate of 15% contributions tax. No contributions tax is payable on your after-tax contributions.|| |
| ||8.||The Federal Government provides a matching co-contribution for every $1 of personal member after-tax contribution (subject to a maximum co-contribution limit per year) if your total income plus salary sacrifice contributions is less than $61,920 (indexed) for the 2012/2013 financial year. It applies if you:|
* earn at least 10% of your total income (assessable income plus reportable fringe benefits plus reportable superannuation contributions) from carrying on a business or eligible employment as defined for co-contribution purposes or a combination of both,
* did not hold an eligible temporary resident visa at any time during the financial year,
* are aged less than age 71 at the end of the financial year in which your contribution was made, and
* lodge an income tax return with the Tax Office.
The co-contribution amount has been calculated based on the rates and limits applicable to the 2012/13 year. Remember that your entitlement to any amount of Government co-contributions shown above will be dependent on you satisfying all the co-contribution eligibility criteria.
The Government co-contribution has been calculated using rules in place as at 30 June 2012. The Government has proposed a reduction from 1 July 2012 in the matching co-contribution (from $1 to $0.50 per $1 contributed after-tax to a maximum of $500 per income tax year) and maximum income threshold (from $61,920 to $46,920). This proposal has not yet been passed.
| ||9.||There are significant tax penalties if your contributions to superannuation exceed certain limits. There is an annual limit on concessional contributions (eg. Employer SG contributions and salary sacrifice contributions) and a separate annual limit on non-concessional contributions (eg. After-tax contributions). In broad terms, these limits for the 2012/13 year are:|
* The cap on concessional contributions is $25,000 pa
* Non-concessional contributions have a limit of $150,000 in 2012/13. However, people under age 65 may be able to make up to $450,000 in non concessional contributions in $450,000 in 2012/2013 (but the non-concessional contributions are limited in the next two years so that no more than $450,000 can be contributions over the three years).
This calculator assumes that your contributions have not exceeded either the concessional contributions cap or the non-concessional contributions cap.
| ||10.||No allowance has been made for taxes (including taxation that applies to the payment of superannuation and retirement income benefits) with the exception of personal income tax and contributions tax. If any of these other taxes apply, the calculator's results will be incorrect.|| |
| ||11.||Concessional (Salary Sacrifice including SG) contributions are capped at a maximum of $25,000 and are subject to contributions tax of 15%.|| |
| ||12.||Since the comparison is based on the same contribution amount, the calculator assumes that any after-tax contributions made are equal to the amount of salary sacrifice contributions.|| |
| ||13.||Superannuation Guarantee contributions cease at age 70.|| |
| ||14.||No allowance has been made for spouse contributions.|| |
| ||15.||No allowance has been made in this calculation for inflation or other changes in the cost of living.|| |
| ||If your actual situation differs from the assumptions made, then the calculations may differ from your actual amounts.|| |
| ||No substitute for professional advice|
| ||This calculator does not constitute a recommendation or statement of opinion about superannuation and should not be relied upon for the purpose of making a decision in relation to a superannuation product. It does not replace personal financial advice. For this reason, you should not make any decision on the information provided without first seeking advice from a financial services licensee or AMP Financial Planner.|| |
| ||To the maximum extent permitted by law, neither AMP Life Limited nor any of its related bodies corporate or their officers, employees or agents (the AMP Group) warrant the accuracy or reliability of the calculator and, to the maximum extent permitted by law, each member of the AMP Group disclaims all liability to any person in respect of anything done or omitted to be done, and the consequences of such action or omission, by any such person in reliance upon all or any part of the information obtained using this calculator.|| |