Salary sacrifice calculator assumptions

Income refers to before tax (gross) income from employment excluding any superannuation guarantee contributions. Any income from other sources (such as investments) is ignored.
Tax and Medicare Levy calculations have been undertaken on an individual basis – no allowance has been made for taxation offsets or rebates.
Allowance has been made for Medicare Levy at 1.5% of income and the Medicare Levy /reduction for lower income earners has been taken into consideration on an individual taxpayer basis.
No allowance has been made for Medicare Levy Surcharge that may apply where no private health insurance is held. As a result the tax and Medicare Levy savings may actually be less than those shown.
Eligibility to contribute to superannuation is assumed.
Eligibility to salary sacrifice is assumed.
Superannuation Guarantee (SG) contributions are assumed at 9% of the income figure input into the calculator. It is assumed that your employer will continue to contribute based on the pre-salary sacrificed income – this should be confirmed with your employer as your employer may pay SG contributions on the lower income after the salary sacrifice deduction.
Salary sacrificing may reduce other employment benefits (such as annual leave loading for example).
Contributions to superannuation are generally preserved until retirement and you will not be able to access them until that time.
Salary sacrificing will reduce take home pay. The cashflow considerations of salary sacrifice are not taken into consideration. For the full effect of any salary sacrifice arrangement on your cashflow, consult with a professional Financial Adviser.
The concessional contribution cap for those aged up to 49 is $25,000. Those aged 50 and above have a cap of $50,000.
This calculator assumes a 9% superannuation contribution on the income amount entered. No allowance has been made for the maximum salary requiring superannuation contributions ($42,220 per quarter for the 10/11 financial year).