Data Sources & Methodology
Information about the data and methodology used in our financial insights tools
Our Commitment to Data Quality
Our financial insights tools aim to provide reliable information based on accurate and up-to-date data sources. We prioritise data from official Australian government agencies and respected research institutions. This page outlines our data sources and the methodology behind our calculations to ensure transparency.
Primary Data Sources
Australian Taxation Office (ATO)
The ATO provides comprehensive taxation and superannuation statistics that form the foundation of our tax and superannuation insights:
- Individual income tax statistics by age, occupation, and location
- Taxation statistics including tax brackets and rates
- Superannuation statistics including average and median balances by demographics
- Statistical data on tax deductions and offsets
Australian Bureau of Statistics (ABS)
The ABS provides demographic, economic and wealth distribution data that we use for income and wealth comparisons:
- Survey of Income and Housing
- Household Income and Wealth data
- Labour Force Survey data
- Population demographics by age, gender, and location
Reserve Bank of Australia (RBA)
The RBA provides economic data that informs our projections and economic assumptions:
- Historical inflation rates
- Wage growth statistics
- Economic outlook data
Research Institutions
We incorporate research from respected Australian institutions including:
- Grattan Institute analyses on retirement income and wealth inequality
- Australian Institute of Superannuation Trustees (AIST) research
- Association of Superannuation Funds of Australia (ASFA) benchmarks
- Academic research on financial wellbeing and retirement adequacy
Methodology & Calculations
Income Tax Calculations
Our tax calculations are based on current ATO tax brackets and rates for the applicable financial year. We calculate:
- Income tax including Medicare levy and low-income offsets where applicable
- Tax distribution based on ATO taxation statistics
- Tax contribution ratios as a measure of progressive taxation impacts
- Marginal and average tax rates at different income levels
All calculations are performed client-side using the current tax rates and reflect the most recent available ATO data. Changes in legislation may affect the accuracy of these calculations.
Superannuation Projections
Our superannuation projections use compound interest calculations based on the following assumptions:
- Average annual investment return: 6.5% (before inflation)
- Inflation rate: 2.5% per annum
- Real investment return (after inflation): 4.0% per annum
- Salary growth: 3.0% per annum
- Superannuation Guarantee rate: As legislated (increasing to 12% by 2025)
- Concessional contribution cap: $30,000 per annum
Our projections use a recursive calculation method that accounts for:
- Compounding investment returns on existing balance
- Regular employer contributions (as a percentage of salary)
- Additional voluntary contributions (if specified)
- Salary increases over time
Results are shown in both nominal (future dollar value) and inflation-adjusted (today's dollar value) formats to help users understand the real purchasing power of their projected retirement savings.
Income and Wealth Distributions
Our income and wealth distribution comparisons are based on:
- ABS Survey of Income and Housing data
- ATO taxation statistics for taxpayer income percentiles
- Research on wealth distribution across age groups and demographics
We use percentile calculations to place individual circumstances within the broader Australian context. This allows users to compare their financial position against national averages, medians, and various percentile brackets.
Data Currency & Updates
We strive to update our data annually as new statistics become available from our source organisations. However, there is typically a lag of 1-2 years in the release of comprehensive financial data by government agencies. For example, complete ATO taxation statistics for the 2022-23 financial year may not be available until late 2024.
Tax rate and superannuation information is updated as soon as legislative changes come into effect.
Last major data update: July 2023, incorporating:
- ATO taxation statistics for 2020-21 financial year
- ABS wealth and income data to 2021-22
- Updated tax rates and superannuation regulations for 2023-24
Limitations & Disclaimers
While we make every effort to ensure the accuracy of our data and calculations, users should be aware of these important limitations:
- All projections are estimates based on assumptions that may not reflect actual future conditions
- Economic factors such as inflation, investment returns, and wage growth may vary significantly from our assumptions
- Legislative changes can affect tax rates, superannuation rules, and other financial parameters
- Individual circumstances may include factors not captured by our simplified models
Our tools are designed for educational purposes only and should not replace professional financial advice. For more information, please refer to our Terms of Use.