Overview

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The purpose of this tool is to enable advisers to demonstrate the long-term benefits of contributing and investing surplus funds into a concessional tax environment as compared to investing them outside of the superannuation system. This tool, originally used for super compounding exclusively has evolved into an all-purpose scenario tool.

*The tool isn’t attempting to present an accurate projection of the endpoint that may be attained, but to demonstrate a broad point of the benefits of compounding. It does not take into account all the circumstances of your client and so should be accompanied with an appropriate disclaimer when providing to a client.

Please note that this is split into the NEW v's the LEGACY user interface whilst we make available both UI's for customers. In time we will remove all references to the old user interface entirely.

• New User Interface
• Legacy User Interface

New User Interface

• Variables & Input Fields
• How do I use it?

Variables & Input Fields

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Variable Name		Description
1	Annual Contribution	This represents the extra contributions made each year over the lifetime of the client.
2	CPI	This is the expected average Consumer Price Index.
3	ROI	This is the expected average Return on Investment.
4	Comparison Tax Rate	This is the tax rate which diminishes the available funds to invest post contribution.
5	Marginal Tax Rate	This is the average marginal rate of tax depending on each individual client’s circumstance.
6	Years To Compare	This is the time frame for the projection – obviously the longer the better for compounding to work its magic.
7	Graph	Demonstrates the results of the tool via a graph.
8	Tax at Comparison Rate	Represents the total tax you'd pay in comparison to the marginal rate – this is set at the users discretion.
9	Tax at Marginal Rate	Represents the total tax you'd pay if the funds were invested elsewhere – this is set by the marginal tax rate.
10	Tax Savings	This shows the total savings if the funds were contributed in super – calculated by the tax at a marginal rate less the tax on superannuation.
11	Balance at Comparison Rate	This represents the total funds that you'd have in super at the end – based on the number of years, annual contribution, CPI, RIO and tax rate.
12	Balance at Marginal Rate	This represents the total funds that you'd have if the money was left outside super.
13	Improved Position	Shows the overall position by comparing the superannuation balance and balance outside superannuation.

 

How do I use it?

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The idea is that you sit in front of your client so you can demonstrate and explain the concepts behind what you’re demonstrating to them.

1. Work through each variable inviting the client to participate in setting the various figures leading them with explanations as required.
2. The graph and corresponding figures in Your Results explain the broad tax savings to be had over time and how much further ahead the client could be should they start making contributions now.
3. Once you have demonstrated the benefits of getting money into super, this leads to a discussion that can be facilitated via the simple retirement calculator.       

i	You have to save your instance before you can print it.

 

Legacy User Interface

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Jump straight to the applicable section:

• Variables & Input Fields
• How do I use it?

Variables & Input Fields

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Variable Name		Description
1	Annual Contribution	This represents the extra contributions made each year over the lifetime of the client.
2	CPI	This is the expected average Consumer Price Index.
3	ROI	This is the expected average Return on Investment.
4	Super Tax Rate	This is the Superfund tax rate which diminishes the available funds to invest post contribution.
5	Marginal Tax Rate	This is the average marginal rate of tax depending on each individual client’s circumstance.
6	Years To Compare	This is the time frame for the projection – obviously the longer the better for compounding to work its magic.
7	Graph	Demonstrates the results of the tool via a graph.
8	Tax on Superannuation	Represents the total tax you'd pay on Super Contributions – this is set by the super tax rate.
9	Tax at Marginal Rate	Represents the total tax you'd pay if the funds were invested elsewhere – this is set by the marginal tax rate.
10	Tax Savings	This shows the total savings if the funds were contributed in super – calculated by the tax at a marginal rate less the tax on superannuation.
11	Superannuation Balance	This represents the total funds that you'd have in super at the end – based on the number of years, annual contribution, CPI, RIO and tax rate.
12	Savings Outside Superannuation	This represents the total funds that you'd have if the money was left outside super.
13	Improved Position	Shows the overall position by comparing the superannuation balance and balance outside superannuation.

How do I use it?

---

The idea is that you sit in front of your client so you can demonstrate and explain the concepts behind what you’re demonstrating to them.

1. Work through each variable inviting the client to participate in setting the various figures leading them with explanations as required.
2. The graph and corresponding figures in Your Results explain the broad tax savings to be had over time and how much further ahead the client could be should they start making contributions now.
3. Once you have demonstrated the benefits of getting money into super, this leads to a discussion that can be facilitated via the simple retirement calculator.       

      

i	You have to save your instance before you can print it.

 

 

Related Links

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Menus & Shared Elements	This support article covers all the menus and shared elements used throughout AccountKit
Document Management System (DMS)	Learn how to connect and manage your DMS