Salary sacrifice calculator

Disclaimer

• The purpose of this calculator is to show users how making either before-tax (salary sacrifice) or after-tax contributions may change their super and take home pay. It is a guide and provides factual information only, and not general or personal advice.
• In some cases contributing to superannuation both before-tax and after-tax may be appropriate, this calculator only compares one or the other.
• The results shown are based on the information you provide, but don’t consider personal financial circumstances such as your living costs and debts. When making a financial decision you should contemplate your needs, objectives, and overall financial situation.
• This calculator is not intended to be relied on for the purpose of making a decision in relation to a financial product. You should consider obtaining advice from a licenced financial adviser before making any financial decisions.
• You should also consider that superannuation generally isn’t able to be accessed until you retire.
• Tax and superannuation rules change over time. The calculations are based on the current rules and do not consider future or proposed changes.
• The results provided are only relevant for this current financial year.
• This calculator is only a guide. Its results rely on some key assumptions that are outlined below.
• Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL 228975), the trustee of Australian Retirement Trust (ABN 60 905 115 063) expressly disclaims all liability and responsibility to any person who relies, or partially relies, on anything done or omitted to be done by this calculator.

Assumptions

Income

• If you are not a Queensland Government employee: your income is your employment income before tax and superannuation contributions are taken out. It would include allowances and bonuses but exclude overtime. This is sometimes referred to as Ordinary Times Earnings (OTE) Salary.
• If you are a Queensland Government employee: your income is based on your superannuable, before tax and superannuation contributions are taken out.
• The calculator only allows for incomes between $1,000 and $250,000 per annum.

Tax on income

The tax assumptions used are general in nature only and do not constitute tax advice.

• Tax rates applied are for the 2022-23 financial year.
• You are assumed to be a resident for tax purposes.
• Income tax payable is calculated on the income minus concessional superannuation contributions (if applicable) using the current year’s personal income tax rates.
• Medicare levy is included using individual thresholds, which is different for couples.
• Medicare surcharge has not been included in the calculation.
• No allowance has been made for any other tax offsets or deductions.

Contributions

• We assume you are under age 75 and are eligible to make personal contributions.
• The calculation assumes you are eligible to receive government co-contributions if you make after-tax contributions and have an appropriate level of income.
• The calculator only allows for employer contribution rates between 9.5% and 20%.
• Many Queensland Government employees are required to make Standard Contributions of between 2% and 5% of their fortnightly superannuable salary. For employees making the 2% Standard Contribution rate, the calculators default employer rate is based on the trust deed which remains at 9.75%; this can be amended in the employer contribution field.
• Queensland Government employers  perform a calculation to ensure that at least 10.5% of Ordinary Times Earnings is paid as employer contributions, and will make an additional top up when required. This calculator assumes that your employer's contributions ( based on salary for super purposes / superannuable salary) is the same or higher than 10.5% of your OTE  salary. If this is not the case you may need to seek financial advice.

Tax on contributions

• The calculation includes the government Low Income Superannuation Tax Offset (LISTO) based on your income and contributions.
• Excess contributions tax is applied to concessional contributions made above the relevant cap.
• Division 293 tax, which is applies to high income earners is not included, this is actioned by the ATO when you submit your tax return.

Contribution caps

• The current concessional contribution cap is $27,500.
• The calculator does not consider concessional contributions carry forward which relates to unused concessional contribution cap amount accrued since 1 July 2018.
• The calculator assumes you are under the relevant non-concessional contribution cap.

Defined Benefit accounts

• The amount to enter for your income should be the 1 July superannuation salary reported by your employer at the start of the financial year.
• The calculations are only appropriate for Queensland Government staff making standard contributions of 2-5% (or 6% for Police). Its results are not appropriate for State or Police account holders.
• The amount calculated that counts towards the concessional contribution cap is based on a statutory formula. Where this amount exceeds the concessional contribution cap, it is taken to be at the cap and no excess contributions tax is applied.
• Additional voluntary contributions cannot be made to a Defined Benefit account and are directed to an accumulation account.
• The amount calculated to count towards benefit growth is based on the standard contribution rate as outlined as follows: