What the NPGS Demo Calculator Models
• Timeline: Monthly projections from your current age to your selected retirement age.
• Mortgage: Amortising principal and interest loan with monthly interest compounding, constant interest rate, and constant monthly repayment.
• Super contributions: Employer Superannuation Guarantee based on base salary, contributed monthly.
• Contributions tax: 15% tax applied to concessional contributions; net amount is credited to super.
• LISTO: Low Income Super Tax Offset applied annually for eligible income levels (up to $500).
• Investment returns: Net annual super return (after fund tax and fees) converted to monthly compound rate.
• Super fund fees: Three fee types modeled - flat annual admin fee, asset-based admin fee (percentage of balance), and annual insurance premiums. Flat and insurance fees adjust for inflation annually.
• Salary indexation: Annual salary growth applied on 1 July (Australian financial year).
• Today's dollars: Where shown, present values are calculated by discounting future dollar amounts back to today using the salary growth assumption as the discount rate.
Key Simplifications
• SG modeled monthly (many employers pay quarterly). LISTO credited month after FY end in model.
• Mortgage interest rate and super return held constant over projection period.
• No salary sacrifice, personal contributions, Division 293 tax, spouse contributions, or carry-forward caps.
• Mortgage features excluded: offset/redraw, interest-only periods, and lump-sum repayments.
• No switching of super investment options during projection.
• Investment earnings tax inside super captured by using net return.