Australian Super Assumptions

New Australian super accounts use one annual net investment return. This includes dividends and capital growth after investment tax and investment fees, but before inflation and any separately entered administration costs or insurance.

Saved accounts may use the earlier model with separate capital growth, earnings and investment-tax settings. Review the account’s return model before comparing results.

Investment return and account costs

The initial return assumption is intended as a broad long-term illustration and was reviewed on 9 September 2026. Change it to match the return basis you intend to model. Different investments and costs can produce materially different outcomes.

Do not enter the same cost twice. A return after investment fees may still exclude administration fees and insurance. If your chosen return already includes an account cost, do not also enter that cost in the separate fields.

Fixed costs can be entered in today’s dollars, in which case their future dollar amount rises with the scenario’s inflation assumption, or as a fixed future dollar amount. Annual costs are prorated for partial years.

How growth is calculated

The return is an effective annual rate. A full year at a hypothetical 7% on $100,000, with no deposits or withdrawals, produces $7,000 of net investment return before separately entered costs and inflation. The engine does not deduct another investment tax amount from that $7,000 or add a separate dividend yield.

Monthly and partial-year returns use the corresponding fraction of the effective annual rate. Within a simulation step, net deposits and withdrawals are spread across month ends. The same editable annual net return applies throughout the scenario.

The annual account report labels this combined amount Net investment return. Investment tax and investment fees are included in the assumed rate and cannot be itemised from it. Administration costs and insurance are shown separately.

Contributions, releases and withdrawals

Contribution tax is separate from investment returns. The model’s concessional contribution tax and contribution-cap settings continue to apply when employer or employee contributions are paid into super.

A hypothetical contribution release moves eligible current contributions from super into available cash under the rule’s configured percentage, dates and assumed release tax. It reduces the balance receiving future net investment returns. It does not establish eligibility to withdraw.

Withdrawal access and withdrawal tax have their own settings. Changing the investment return does not change those rules.

Investment return and retirement

The model uses the same net investment return before and after retirement. It does not automatically increase the return or infer a tax-exempt pension phase from turning 60, stopping work or reaching the calculation retirement age. Pension transfers are not modelled.

The calculation retirement age below is used for present value. It does not start or alter the scenario’s Retirement milestone or replace the account’s withdrawal-access rule.

Present-value assumptions

The net investment return is before inflation. Do not subtract inflation from the entered rate: the model applies the selected inflation and present-value settings separately. Saved scenarios may contain different assumptions.

Existing accounts

Older super accounts automatically use the 6.1% annual net investment return when loaded. This replaces the previous growth, earnings and investment-tax settings; it does not calculate an equivalent return from them. You can edit the net rate directly in the account form. A net rate you have already entered is kept.

Existing fixed and balance-based account charges become separate administration costs. Investment fees based on earnings are included in the net return. The updated calculation can change earlier scenario projections, including saved comparisons.

Comparing scenarios and limitations

A comparison of super and taxable investments needs consistent underlying investment assumptions. The super rate already includes internal investment tax, while a taxable account can calculate personal income and withdrawal taxes separately. Net worth includes balances that may still have tax payable on future withdrawals; it is not necessarily the amount available after liquidating every investment.

The model does not reproduce fund-level trading, realised gains, franking credits or pension-transfer eligibility. Zero administration costs or insurance means these costs are omitted, which can overstate the projected balance. Contribution, tax, preservation-age and access rules are also simplified.

The calculator is not intended to be relied on to make a decision about a financial product. Consider obtaining advice from an Australian financial services licensee before making financial decisions. See the general calculator disclaimer.