Copyright © 2022 Rarebreed Technologies Pty Ltd

 

All rights reserved. No part of this financial tool may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the owner, except in the case where results/projections of the financial tool are embodied within Statements of Credit Assistance and certain other commercial uses permitted by copyright law and/or the consent of the owner. For permission requests, write to the owner, at the address below:

 

Managing Director

Rarebreed Technologies Pty Ltd

PO Box 140

SUBIACO WA 6904

 

Money CLARITY Money Management Financial Software

 

Disclaimer of Relationships

 

Money CLARITY is registered a business names of Rarebreed Technologies Pty Ltd ACN: 620 166 092.

Rarebreed Technologies Pty Ltd is the developer of the Money CLARITY Money Management financial software which has been licenced to the holder of an Australian Credit Licence and/or their Authorised Credit Representatives.

Rarebreed Technologies Pty Ltd is not the provider of any advice provided by this calculator.

1. Where credit assistance or credit product advice is provided it is done so by the holder of an Australian Credit Licence and/or their Authorised Credit Representatives.

  

Tools and Calculator Disclaimer

 

The Money CLARITY Money Management Financial Software calculator [‘calculator’] is designed to be informational and educational tools only, and when used alone, do not constitute credit advice. We strongly recommend that you seek the advice of a financial services professional before making any decisions on credit products. We also encourage you to review your money management strategies periodically as your financial circumstances change.

 

This calculator simulation is provided as an approximation of future financial performance. The results presented by this calculator are based on certain assumptions. They may not reflect the actual performance of your loans. Rarebreed and its affiliates are not responsible for the consequences of any decisions or actions taken in reliance upon, or as a result of, the information provided by this calculator. Rarebreed Technologies Pty Ltd is not responsible for any human or mechanical errors or omissions.

 

The calculator gives you some examples of different financial scenarios, based on stated assumptions and the data inputted. The calculations are intended as estimates only and they’re not to be used for as a substitute for professional advice.

 

While we’ve based the information on sources that we believe are reliable and accurate, your actual outcomes will depend on a range of factors outside of our control. You shouldn’t rely on this calculator when you’re making decisions about a credit product, financial institution, or strategy. Instead, you should consider getting advice from a qualified adviser.

 

Rarebreed Technologies Pty Ltd expressly disclaim all liability and responsibility to any person who relies, or partially relies, on anything done or omitted to be done by this calculator.

 

Assumptions and limitations of the Calculator

 

Default Assumptions

 

There are several assumptions which the calculations are based on, and they include but are not limited to:

 

Calculations of Dates and Time

 

1. The creation date or Date Stamp of the calculations may not be date at which you receive any output information from the calculator by the licenced User.

2. One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

3. All months are assumed to be of equal length. Many loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.

 

Eligible Pension Age

The calculator assumes that you will ceasing working by your Eligible Pension Age. This is the age at which you may qualify for the Age Pension which is paid to people who meet age and residency requirements, subject to a means test. Pension rates are indexed to ensure they keep pace with Australian price and wage increases.

https://www.dss.gov.au/seniors/benefits-payments/age-pension

The calculator uses your Eligible Pension Age as the “end date” to simulate your capacity to repay your debts and to save more once your debts are paid.

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Personal Tax

This calculator applies the current ATO Tax Rates you will pay based on you being older than 18 years of age, being an Australian Resident and upon the Gross Taxable Income that has been inputted into the calculator.

https://www.ato.gov.au/Rates/Individual-income-tax-rates/

The personal tax rate applied within the calculator does not include the Medicare Levy of 2% or Medicare reductions or exemptions (where applicable), any HECS/HELP compulsory repayments or concessional tax treatment of Superannuation under the First Home Super Saver Scheme (FHSS).

Investment Property – Tax Adjustment/Deductions to your personal tax obligations

If you rent out your property(s) or it is genuinely available for rent (investment property), you can claim deductions for most of the expenses you incur in these periods.

You can only claim deductions for the expenses that relate to the income-producing use of the property.

https://www.ato.gov.au/Individuals/Investments-and-assets/Residential-rental-properties/rental-expenses-to-claim/

The calculator allows for data entry of your loans for investment purposes and the allowable expenses and interest costs for deduction against your taxable income. Any adjustment to your taxable income is calculated based on those data inputs.

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The simulations generated in the calculator are based on the following assumptions.

 

Money CLARITY Guiding Principles and Pre-set Goals and Objectives

 

The calculator does not take into account your personal objectives, financial situation or needs and relies money management logic and on a sequential set of priorities.

 

The calculator principles and logical priorities and recommendations are:

 

1. Understand your banking, cash flow movements and spending behaviours – without this knowledge it will be difficult for you to establish and maintain your Cash flow budget and understand your “consumer behaviours”.

2. Set simple, practical, and realistic budgets on your expenditure with the absolute intent to ensure you have greater income than expenditure. Know what you earn and how you spend.

3. Within your budget, ensure that you retain a cash flow buffer, recognising that your cash flow (inflow and outflow) will have its ups & downs and that it is wise to have available “cash at hand”; enough to insure you against life’s misfortunes, breakages, and inflation.

4. Consider or have reviewed by a professional adviser your personal life insurance as it could protect your income if you're unable to work because of a disability, caused by illness or injury. 

5. Use simple and cost-efficient banking and loan structures.

6. Next, and importantly, rid yourself of high interest personal debt.

7. If you have other life goals (with priority before paying down your Home Loan first) that require savings, then save for that “Big Hairy Audacious Goal” but only after ridding yourself of high interest debt. Examples of these are building savings before taking time off work to have a Baby or returning to study and still managing whilst your income is less.

8. Pay your Home Loan off as soon as possible

9. Save for your retirement, over and above your Employer paid Contributions (Superannuation Guaranteed Contributions) as soon as you are able and can afford to.

 

Home and Investment Home Loan Calculations and Assumptions

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1. This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

2. Results are based on information you have provided and/or have been inputted by the Licenced User of the Money CLARITY Money Management Calculator and do not take your personal circumstances into account.

3. It applies to loans where your regular repayment includes both interest and the gradual repayment of principal and interest of the amount borrowed. If your loan(s) is inputted as interest only, only the interest is deducted, and the principal debt amount remains unchanged.

4. Using this model does not guarantee you will be eligible for a loan. You will need to satisfy your lender's lending criteria.

5. Interest rates do not change for the life of the loan.

6. Interest is calculated by compounding on the same frequency as the repayment selected, i.e. fortnightly, or monthly.

7. It does not consider up-front fees such as loan establishment fees, valuation fess or any on-going Lender account keeping or loan package fees.

8. It does not consider your ability to make the repayments shown or changes to your average regular savings.

9. If any Credit Advice Fees &/or Ongoing Financial Care Fees inputted into the calculator that you pay to a holder of an Australian Credit Licence and/or their Authorised Credit Representatives, they are also included in expense calculations and are shown as debits to your Mortgage Offset Account.

10. Deposits to Mortgage Offset Account(s) are assumed to be paid to Mortgage Offset Account at the end of the fortnight or month depending on the Home Loan Repayment frequency selected. If a deposit was paid to Mortgage Offset Account in between home loan repayment cycle, the interest savings were calculated based on the days till the next home loan repayment.

 

‘Cascade’ Personal Debt Reduction Strategies

 

Money CLARITY logic defaults the strategy to the Avalanche method that prioritises paying off your debt balances with the highest interest rate first. This method will ensure you pay the least amount of interest and pay off your loans in the fastest manner.

 

There are alternative strategies you could adopt that will reduce cost and time; they are not as effective as the Avalanche method. You can learn more on these using the link below.

 

i  You can learn more about the Money CLARITY ‘Cascade’ Personal Debt Reduction strategies here:

https://www.money CLARITY.com.au/