Important information about ASG’s education cost and savings calculator

SECTION A – COST CALCULATOR

Forecasting the Cost of Education

  • The cost calculator is designed to provide an estimate of the future total cost of education per student. It shows the variability of costs in education and illustrates the range and differences, across school types and locations.
  • Changes in school fees cannot be accurately predicted. Estimates of future long term education costs are provided as a guide only. ASG cannot guarantee they will represent the actual cost of education for a particular child.
  • The figures have been rounded to the nearest dollar amount.

School Education Costs

  • The cost calculator assumes that a child will attend preparatory program (Prep) as the first year of a further 12 years of formal schooling (primary and secondary schooling).
  • The cost calculator estimates are based upon data collected in late 2018, derived from Monash University research and analysis of public data related to schooling tuition fees—The Good Schools Guide and the My School website and augmented by ASG consumer survey data on ancillary costs.
  • Estimated costs for tuition have been calculated based on the annual median costs. The median costs used a group of schools in the calculations rather than the mean fee (an ordinary average) as used in previous years. The median is seen to be more typical of the fees for any group of schools.
  • The ancillary costs derived from the 2018 ASG Parent Survey are expressed as weighted averages of the median costs identified by survey respondents.
  • The impact of the Consumer Price Index (CPI) increases have been applied in calculating all total figures, and in projections of future years costs and where applicable the relevant sub-index group has been applied accordingly to estimated costs.
  • Inflator dimensions related to trends in the Australian Consumer Price Index (CPI) have been applied for the projection of schooling costs over time.
  • ASG has endeavoured to provide a reasonable basis for planning. ASG has not taken into account the possibility of GST being applied to education fees in the future.

University Costs

  • The estimates of university costs are provided for the state in which the student will attend university, and are based on the degree or degrees required to enter the nominated profession, and living options available to them as university students.
  • Future cost estimates for course and living expenses are determined using the Consumer Price Index (CPI) information averaged at a national level.
  • ASG’s university cost calculations are based on the costs associated with studying in a Commonwealth Supported Place (CSP) in Australia. While full-fee paying places are available at some universities this calculator does not include estimates for these places.
  • The estimates do not take into account costs associated with any study at non-Australian universities or campuses.
  • The estimates do not take into account possible government benefits or allowances because qualifying for such payments varies widely depending on individual circumstances, such as family income and location.
  • In addition, it does not provide estimates on TAFE or the VET sector where the disparity of fees and charges between states would not make it possible to provide accurate costs estimates into the future.
  • While full-fee paying places are available at some universities, this calculator does not include estimates for these places. In addition, it does not provide estimates on TAFE or the VET sector where the disparity of fees and charges between states would not make it possible to provide accurate cost estimates into the future.

SECTION B -SAVINGS CALCULATOR

Savings forecasts:

  • The savings forecast is designed to provide an estimate of the future total amount saved in an education savings fund over a period of time nominated by you.
  • All savings forecasts in this report are based on information provided by you.
  • The savings calculation assumes that the total education costs are deducted from the savings pool at the beginning of the year in which funds are paid, with investment returns, taxes and fees calculated on the balance after the annual deductions.
  • Net investment returns are calculated annually based on the investment return percentage selected by you in the calculator parameters, the regular contributions made, and the account balance after education expenses are paid. Any variation to these elements will impact the net investment return figures in the calculator and this report.
  • The default investment earnings rate used in the calculator represents ASG’s average net investment return (declared rate of return) after fees and taxes have been applied for the past 10 years. This result is not an indication of future performance of an education savings plan.
  • Net Savings is the savings net of education costs.
  • The investment returns needed to fund the school fees you are targeting will also depend on factors such as the asset mix backing your investment, and any fees and charges that are payable in respect of those investments or savings products.
  • The savings forecast are estimates only and may not cover the actual cost of education that you may incur. Investment returns are not guaranteed and past performance is not a reliable indicator of future performance.  Contributions can be changed at any time to help achieve your target savings.
  • ASG’s Savings Calculator utilises a default indexation rate of 5% per annum.  This is based on historical ABS data over the preceding 16 years given the long term nature of education savings plans.
  • The information provided by the calculator and in this report is of a general nature and is not intended to be considered financial, personal or taxation advice. Neither the calculator nor the report take into account your individual circumstances, your financial situation or education or financial needs. You should consider obtaining financial advice and reading the appropriate PDS before making any financial decision based on the calculator or this report.

SECTION C - PRIVACY

Collection of personal information

Your personal information may be collected, stored and disclosed by us in accordance with our Privacy Policy.