LUCRF Super assumptions

Salary sacrifice video

Scenario

Here’s what I did. When I turned 30, I started putting an extra $30 a week into my super and by the time I retire this will make a $41k difference to my balance. And the best thing is I barely noticed it as it only decreased my take home pay by $20 per week because I’m paying less tax.

Assumptions

• Future values are shown in today's dollars discounted by 4% p.a. 
• 30 years of age as at 1 July 2019, 
• $25,000 superannuation invested in MySuper Balanced
• $70,000 p.a. income; income and out-goings occur mid-year; 
• 9.50% employer SG contribution increasing by 0.5% from 01/07/2021 until SG reaches and stays at 12% from 01/07/2025. 
• 6.5% p.a. investment earnings net of fees, taxes and life insurance premiums
• Inflation is assumed at 2.5% due to the rising costs of living and a further 1.5% due to the rising cost of community living standards; taxes and levies remain constant.

Government Co-Contribution video

Scenario

For example, if my wage was $45k a year including tax, and I added a total of $500 of my own money into my super, the Government will put $250 directly into my account after I complete my tax return.

Assumptions

$45,000 is including assessable income, fringe benefits and reportable super contributions