Our assumptions, in the open
People make real decisions based on our numbers, so we publish every rate, threshold, and modelling convention JettWorth uses — with the official source and the date we last checked it. If you spot something out of date, email jettworth@durgadigital.com.
All figures on this page were last verified on 11 July 2026against the sources cited under each table. “FY” means an Australian financial year (1 July to 30 June) — FY2025-26 runs 1 July 2025 to 30 June 2026.
Income tax
We apply resident individual tax brackets to your gross (before-tax) income, using the correct bracket table for each projected year — including the legislated cuts that lower the second bracket from 16% to 15% (1 July 2026) and then 14% (1 July 2027). The Low Income Tax Offset is applied automatically.
| Taxable income | Rate | Applies to |
|---|---|---|
| $0 – $18,200 | 0% | FY2025-26 |
| $18,201 – $45,000 | 16% | FY2025-26 |
| $45,001 – $135,000 | 30% | FY2025-26 |
| $135,001 – $190,000 | 37% | FY2025-26 |
| $190,001 and over | 45% | FY2025-26 |
| Taxable income | Rate | Applies to |
|---|---|---|
| $0 – $18,200 | 0% | FY2026-27 |
| $18,201 – $45,000 | 15% (drops to 14% from FY2027-28) | FY2026-27 |
| $45,001 – $135,000 | 30% | FY2026-27 |
| $135,001 – $190,000 | 37% | FY2026-27 |
| $190,001 and over | 45% | FY2026-27 |
Source: ATO — Tax rates for Australian residents
Projections for FY2027-28 and later use the 14% second-bracket rate, with all other brackets unchanged until new rates are legislated.
| Detail | Value | Applies to |
|---|---|---|
| Maximum offset | $700 | FY2025-26 and FY2026-27 |
| Reduces by | 5c per $1 of income above $37,500 | FY2025-26 and FY2026-27 |
| Then reduces by | 1.5c per $1 of income above $45,000 | FY2025-26 and FY2026-27 |
| Fully phased out at | about $66,667 | FY2025-26 and FY2026-27 |
Source: ATO — Tax offsets
Medicare levy and surcharge
The Medicare levy is 2% of taxable income, with relief for lower incomes: no levy below the lower threshold, then it phases in at 10c per $1 until the full 2% rate is reached. The Medicare levy surcharge is an extra charge for higher earners without private hospital cover — we apply it only if you tell us you do not hold cover.
| Detail | Value | Applies to |
|---|---|---|
| Levy rate | 2% of taxable income | FY2025-26 |
| Singles: no levy below | $28,011 | FY2025-26 |
| Singles: full 2% from | $35,014 (10c per $1 phase-in between) | FY2025-26 |
| Families: no levy below | $47,238 (couple, no children) | FY2025-26 |
| Families: full 2% from | $59,048 (couple, no children) | FY2025-26 |
| Per dependent child | +$4,338 to the lower threshold, +$5,423 to the upper | FY2025-26 |
Source: ATO — Medicare levy
Low-income thresholds are legislated retrospectively in each Federal Budget, so FY2025-26 is the latest confirmed set. Projections use it until the FY2026-27 thresholds are legislated (expected May 2027).
| Income (single) | Surcharge | Applies to |
|---|---|---|
| $0 – $101,000 | 0% | FY2025-26 |
| $101,001 – $118,000 | 1.0% | FY2025-26 |
| $118,001 – $158,000 | 1.25% | FY2025-26 |
| $158,001+ | 1.5% | FY2025-26 |
| $0 – $105,000 | 0% | FY2026-27 |
| $105,001 – $123,000 | 1.0% | FY2026-27 |
| $123,001 – $164,000 | 1.25% | FY2026-27 |
| $164,001+ | 1.5% | FY2026-27 |
Source: ATO — Medicare levy surcharge income thresholds and rates
| Income (family) | Surcharge | Applies to |
|---|---|---|
| $0 – $202,000 | 0% | FY2025-26 |
| $202,001 – $236,000 | 1.0% | FY2025-26 |
| $236,001 – $316,000 | 1.25% | FY2025-26 |
| $316,001+ | 1.5% | FY2025-26 |
| $0 – $210,000 | 0% | FY2026-27 |
| $210,001 – $246,000 | 1.0% | FY2026-27 |
| $246,001 – $328,000 | 1.25% | FY2026-27 |
| $328,001+ | 1.5% | FY2026-27 |
Source: ATO — Medicare levy surcharge income thresholds and rates
HECS/HELP repayments
Student loan repayments use the marginal system that started 1 July 2025: you repay a percentage only of the income above each threshold, not of your whole income (except in the top band). Your loan balance is indexed each 1 June by the lower of inflation (CPI) and wage growth (WPI) — the 2024 reform. Repayment thresholds rise with wages each year.
| Repayment income | Repayment | Applies to |
|---|---|---|
| $0 – $67,000 | Nil | FY2025-26 |
| $67,001 – $125,000 | 15% of income above $67,000 | FY2025-26 |
| $125,001 – $179,285 | $8,700 + 17% of income above $125,000 | FY2025-26 |
| Over $179,285 | 10% of total repayment income | FY2025-26 |
Source: ATO — Study and training support loans rates and repayment thresholds
| Repayment income | Repayment | Applies to |
|---|---|---|
| $0 – $69,528 | Nil | FY2026-27 |
| $69,529 – $129,717 | 15% of income above $69,528 | FY2026-27 |
| $129,718 – $186,050 | $9,028 + 17% of income above $129,717 | FY2026-27 |
| Over $186,050 | 10% of total repayment income | FY2026-27 |
Source: ATO — Study and training support loans rates and repayment thresholds
For projection years beyond FY2026-27 we index these thresholds by an assumed 3.5% annual wage growth until the ATO publishes new figures. Balance indexation each year uses the lower of your inflation and salary-growth assumptions, mirroring the min(CPI, WPI) rule.
Superannuation
Employer contributions, contribution caps, contribution taxes, access rules, and the minimum amounts you must withdraw once your super is paying you a pension.
| Item | Value | Applies to |
|---|---|---|
| Employer super contribution (Superannuation Guarantee) | 12% of gross salary | From 1 July 2025 (final legislated rate) |
| Before-tax (concessional) contributions cap | $30,000 | FY2025-26 |
| Before-tax (concessional) contributions cap | $32,500 | FY2026-27 |
| After-tax (non-concessional) contributions cap | $120,000 | FY2025-26 |
| After-tax (non-concessional) contributions cap | $130,000 | FY2026-27 |
| Tax on before-tax contributions | 15% inside the fund | All years |
| Division 293 (extra contributions tax for high earners) | Additional 15% once income plus before-tax contributions exceed $250,000 | All years |
Source: ATO — Contribution caps and ATO — Key superannuation rates and thresholds
Caps for years beyond FY2026-27 are indexed to assumed wage growth (3.5% a year) and rounded down to the nearest $2,500, matching how the ATO indexes them.
Super administration fees and insurance are deducted inside each account when entered. Unknown charges are excluded and flagged on the projection. Dollar costs rise with assumed inflation; insurance continues until you change it. Costs are charged mid-year, with an assumed 15% fund tax benefit in accumulation and none in pension. Actual fund treatment can differ. Do not enter investment fees already included in your return assumption. Low-balance fee refunds and automatic insurance cessation are not modelled. The accumulation convention is benchmarked against the Moneysmart superannuation calculator.
| Item | Value | Applies to |
|---|---|---|
| Extra tax on earnings for balance between $3m and $10m | +15% on that share of earnings | From FY2026-27 |
| Extra tax on earnings for balance above $10m | +25% on that share of earnings | From FY2026-27 |
| Threshold indexation | CPI-indexed in $150,000 / $500,000 steps | From FY2027-28 |
Source: Enacted superannuation legislation — March 2026
Approximation we make: the real Division 296 taxes realised earnings, but a long-range projection cannot know when your fund realises gains. We use each person’s growth after ordinary fund tax and entered costs as an estimate. This can overstate or understate the actual tax; fund realisations, tax adjustments and loss history are not modelled. We combine accounts belonging to the same person and deduct their estimated tax from their own super. The balance test uses closing balance in FY2026-27, then the higher opening or closing balance. Taxable percentages round to two decimal places. Payment is assumed at the end of the model year; actual assessment and release timing differ.
| Item | Value | Applies to |
|---|---|---|
| Preservation age (when you can first access super) | 60 for anyone born on or after 1 July 1964 (55–59 for older cohorts) | All years |
| Transfer balance cap (most you can move into a tax-free pension account) | $2.0m | FY2025-26 |
| Transfer balance cap | $2.1m | FY2026-27 |
| Tax on fund earnings while working (accumulation) | 15% | All years |
| Tax on fund earnings in pension phase | 0% | All years |
| Transition-to-retirement maximum withdrawal | 10% of balance per year | All years |
Source: ATO — Key superannuation rates and thresholds and ATO — Minimum pension standards
| Age | Minimum withdrawal (% of balance) | Applies to |
|---|---|---|
| Under 65 | 4% | All years |
| 65 – 74 | 5% | All years |
| 75 – 79 | 6% | All years |
| 80 – 84 | 7% | All years |
| 85 – 89 | 9% | All years |
| 90 – 94 | 11% | All years |
| 95 and over | 14% | All years |
Source: ATO — Minimum pension standards
Capital gains tax
When the projection sells an asset (shares, ETFs, an investment property), the gain is added to your taxable income for that year and taxed at your rates — including the 2% Medicare levy on the gain.
| Rule | Value | Applies to |
|---|---|---|
| Discount for assets held more than 12 months | 50% discount on the gain | Currently used for every projection year |
| Home you live in (main residence) | Fully exempt from CGT | All years |
| Medicare levy on gains | 2% levy applied to the taxable gain | All years |
| Gains taxed at | Your marginal rates (gain added to income in the sale year) | All years |
Source: ATO — Capital gains tax
In projections, property you have not marked as an investment is treated as your home and sells CGT-free. The projection engine does not yet apply the July 2027 CGT changes, so tax on later sales may be understated.
| Change | Detail | Applies to |
|---|---|---|
| Discount replaced by inflation indexation | Eligible gains are adjusted for inflation | Gains accruing from 1 July 2027 |
| Minimum tax floor | 30% minimum rate on real gains, subject to exceptions | Gains accruing from 1 July 2027 |
| Existing holdings | Pre-change and post-change gains receive different treatment; existing holdings are not wholly exempt from the new rules | Holdings spanning 1 July 2027 |
| Eligible new builds | Choice of discount or indexation treatment | Subject to eligibility rules |
Source: Treasury — Budget 2026-27 tax system changes
Our free CGT sale calculator uses sale dates, your transition valuation and assumed future inflation to split eligible gains across July 2027. It models one parcel and excludes complex cases. Further implementation details were under Treasury consultation in August 2026.
Age Pension
From age 67 the projection estimates your Age Pension entitlement under both means tests and pays whichever produces the loweramount — exactly as Services Australia does. The home you live in is not counted as an asset. Figures below are the rates effective 1 July 2026; later years are indexed with your inflation assumption, mirroring the real system’s CPI indexation.
| Item | Value | Applies to |
|---|---|---|
| Eligibility age | 67 | All years |
| Maximum rate — single | $1,200.90 per fortnight (including supplements) | From 1 July 2026 |
| Maximum rate — couple combined | $1,810.40 per fortnight (including supplements) | From 1 July 2026 |
Source: Services Australia — Age Pension
| Item | Value | Applies to |
|---|---|---|
| Full pension below (single homeowner) | $333,000 in assessable assets | From 1 July 2026 |
| Full pension below (single non-homeowner) | $600,000 | From 1 July 2026 |
| Full pension below (couple homeowner) | $499,000 | From 1 July 2026 |
| Full pension below (couple non-homeowner) | $766,000 | From 1 July 2026 |
| Reduction above the threshold | $3.00 per fortnight for every $1,000 of extra assets | From 1 July 2026 |
| Home you live in | Not counted | All years |
| Item | Value | Applies to |
|---|---|---|
| Full pension when income below (single) | $226 per fortnight | From 1 July 2026 |
| Full pension when income below (couple combined) | $396 per fortnight | From 1 July 2026 |
| Reduction above the free area | 50c per $1 of income over (combined for couples) | From 1 July 2026 |
| Deeming threshold (deeming = income your financial assets are assumed to earn, regardless of actual returns) | $66,800 single / $110,600 couple | From 1 July 2026 |
| Deeming rate below the threshold | 1.25% | From 1 July 2026 |
| Deeming rate above the threshold | 3.25% | From 1 July 2026 |
Source: Services Australia — Income test and Services Australia — Deeming
Default growth assumptions
Unlike the tax tables above, these are modelling assumptions, not rules. They are our defaults for long-run annual returns, and every one of them is adjustable in your projection settings — your numbers, your assumptions.
| Assumption | Default | Why |
|---|---|---|
| Super growth | 6.5% a year | Long-term balanced fund average |
| Property growth | 3.5% a year | Long-run residential capital growth |
| Shares / ETF growth | 7.0% a year | Long-run equity market return |
| ETF dividend yield | 3.5% a year (75% franked) | Broad Australian market distribution yield |
| Cash / savings rate | 4.5% a year | High-interest savings and term deposit rates |
| Inflation | 2.5% a year | Middle of the RBA 2–3% target band |
| Salary growth | 2.5% a year | Matches inflation — ABS wage data has tracked CPI within ±0.5 percentage points for a decade, so we assume 0% real wage growth by default |
Source: JettWorth modelling defaults, informed by long-run Australian market data (APRA fund returns, CoreLogic, RBA, ABS)
FIRE calculations default to a 4.0% safe withdrawal rate (the share of your portfolio you draw each year in retirement) — also adjustable.
How the model works
The conventions behind every projection, and — just as important — what we deliberately do not model.
Conventions
- Annual simulation. The engine steps through your plan one year at a time, applying income, tax, contributions, growth, and life events for each year.
- Income is always entered gross (before tax). We calculate income tax, Medicare, and HECS from your gross figure — you never need to work out your own take-home pay.
- Money is stored as whole cents. Every calculation uses integer cents, so results never drift from floating-point rounding.
- Withdrawals come out before growth.In retirement years, money you draw down is removed first and only the remaining balance earns that year’s return. This is the conservative choice — it slightly understates rather than overstates your balance.
- Today’s dollars or future dollars — your choice. Every chart can toggle between nominal values and inflation-adjusted (real) values.
- Monte Carlo uncertainty bands come from 1,000 simulation runs with randomly drawn annual returns (log-normal, correlated across asset classes) rather than a single fixed-return path.
- Franking credits on ETF dividends are grossed up at the 30% company tax rate.
What we do not model (yet)
- Couples are modelled as separate individuals — we do not optimise tax or contributions across a household.
- The Seniors and Pensioners Tax Offset (a tax reduction for pension-age retirees), so retirement tax can be slightly overstated.
- Carry-forward before-tax super contributions (using unused cap from earlier years) and bring-forward after-tax contributions (contributing up to three years of cap at once).
- Franking credits on individual shareholdings — franking is applied at the ETF level only.
- What happens to a loan repayment once the loan ends. When a mortgage or car loan finishes, the repayment becomes money you have left over — and unless you’ve told us you save it, we treat it as spending. That makes paying a loan off early look worse over a long horizon than keeping it, because the plan assumes you spend everything it frees up. Until we model this properly, read early-payoff comparisons over the years the loan is still running.
- Extreme market shocks beyond what the Monte Carlo distribution and its stress scenarios capture — genuine fat-tail events are wilder than any model.
Money you have left over
What happens to money left at the end of the month: the amounts you enter, where they go, and how anything you haven’t entered is treated.
- Money left over is treated as spending
- Money left at the end of the month counts towards your projected net worth only if you tell us you put it away. Anything you haven't entered as saving or investing is modelled as money you spend.
- Interest and dividends count as money left over too
- Interest on your cash and dividends from your investments are part of what you have left over each month, and are treated the same way as everything else left over.
- The amounts you enter stay the same over time
- Enter $1,000 a month and we model $1,000 a month for every year ahead. The figure doesn't rise with inflation or with your pay, so update it when what you put away changes.
- We never model you saving more than you have
- In a year where your income doesn't stretch to the amounts you've entered, we model what your cash flow covers and show you the shortfall.
- A tight year scales everything down together
- When there isn't enough to cover everything you've entered, each amount is reduced by the same proportion, so the balance between them stays as you set it.
- Saving stops when your plan reaches retirement
- From the year you retire, these amounts stop. The plan draws money down from that point rather than adding to it.
- Regular investing set on an account adds to this
- A monthly amount set on a specific account in your Snapshot is added to what you enter here — the two aren't the same money. Your total is the sum of both.
- A negative balance gets cleared first
- If something leaves your cash in the red, money left over goes to bringing it back to zero before any of it is treated as spending.
- Your investing goes where you say
- Money you mark as saving goes to cash. Money you mark as investing goes to the account type you choose. Spreading it across what you already hold splits it in line with your current balances.
How we test
Publishing assumptions only matters if the code actually implements them. Here is how we hold ourselves to that.
- Every financial calculation has automated unit tests — over 1,200 tests run on every code change, and all of them must pass before anything ships.
- ATO worked-examples cross-check suite.A dedicated test suite reproduces the ATO’s own published worked examples for tax, Medicare, HECS, and super, and fails if our results differ.
- Rates are reviewed at every Federal Budget and again after 1 July each year when new thresholds take effect.
- Every table on this page carries its last-verified date, so you can see exactly how fresh each figure is.
1,200+ automated tests, verified 11 July 2026
JettWorth is financial insights and scenario-modelling software. We are not a financial services provider and do not provide financial, investment or tax advice. Insights and illustrative projections are based on your inputs and assumptions. They are estimates, not guaranteed outcomes or recommendations about what you should do. Rules change and personal circumstances differ; consider advice from a licensed professional before acting. See our Terms of Service for the full disclaimer.
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