.png)
Optimo Financial Default Assumptions
On this page
This page lists Optimo Financial's default assumptions. For more information about how assumptions work in Pathfinder, see How to see and edit the assumptions.
General analysis assumptions
| Default value | Notes on changing default | |
|---|---|---|
| Start date for analysis | If case is created between July 1 and March 31: the start date is 1 July of the current financial year. If case is created between April 1 and June 30: the start date is 1 July of the next financial year |
|
| Length of analysis | 20 years |
|
| Legislation | The Optimo Pathfinder model only includes legislation that has been passed in both houses of parliament and received Royal Assent from the Governor General. | Optimo Financial is constantly monitoring proposed changes so that if they become law, Pathfinder is updated quickly. We may also suggest ways to model proposed changes within the existing Pathfinder model. For more information on proposed changes see Legislative updates and Optimo Pathfinder. |
Series for indexation
| Default value (%pa) | Notes on changing default | |
|---|---|---|
| AWOTE | 2025 = 3.2 2026 onwards: 3.1 |
|
| CPI | 2025 = 3.7 2026 onwards: 2.5 | |
| Rental CPI | 3 |
Cash returns
| Type | Default value (%pa) | Notes on changing the default |
|---|---|---|
| Cash account | 2023/24 and 2024/25: 4.1 |
|
| Term deposit | 3.7 | |
| Australian bonds | 3.7 | |
| International bonds | 3.4 |
Family home and Investment Property and assumptions
Family home and Property growth Series
- These series are listed in the 'Index by' field in the series builder, when chosen, they will use the given values.
- If you would like to override these values:
- For any case, instead of choosing one of the below series, you can use the Custom % option
- If you have organisation assumptions, you can request to change the default values for these series.
| Series name | Default values |
|---|---|
| House price growth | 2.5% |
| Unit price growth | 2.5% |
| Commercial price growth | 2.5% |
Family home and Property income and expenses
If you would like to override these defaults:
- For any case, all the below fields are editable (if they apply)
- If you have organisation assumptions, you can request to change the default values.
- Also see LVR assumptions
| Property type | Growth % (see above table) | Rental income (% of property value) | Running Expenses (% of property value) | Acquisition costs (% of property value in year property is purchased) | Disposal costs (% of property value in year property is sold) | Depreciation2 (% of property value) |
|---|---|---|---|---|---|---|
| Applies to | Family home and investment properties | Investment properties only | Investment properties only | Family home and investment properties | Family home and investment properties | Investment properties only |
| House | House Price Growth Series | 5%pa | 1.3% | 5% | 2.5% | 1.2% |
| Unit | Unit price growth Series | 5%pa | 1.3% | 5% | 2.5% | 1.2% |
| Commercial property | Commercial price growth | 5%pa | 1.3% | 5% | 2.5% | 1.2% |
| Existing NRAS unit1 | Unit price growth | 5%pa | 1.3% | 5% | 2.5% | 1.2% |
1For existing NRAS units, the rebate will be applied according to the latest rebate value and will only be applied for the remaining years the property is eligible and the 20% NRAS discount is similarly applied to the rental income.
2 Optimo defaults, standard depreciation of 2.5%pa applies to building component so lower value of 1.2%pa reflects application to total property value.
Loan interest rates
| Default value (%pa) | Notes on changing the default | |
|---|---|---|
| Secured Loans |
| |
| Interest only | 6.5 | |
| No restriction | 6.5 | |
| Principal and Interest | 6 | |
| SMSF LRBA Interest only | 10 | |
| Unsecured Loans | ||
| Interest only | 9 | |
| No restriction | 9 | |
| Principal and Interest | 9 | |
| Reverse Mortgages | ||
| Flexible | 7 | |
| Instalment | 7 | |
| Lump sum | 7 | |
Shares/Managed fund returns (directly owned or in an SMSF)
- Returns are before tax.
- All ‘Shares/managed funds’ have 0.05% buy/sell spread. This means that shares are bought for slightly more expensive price (0.05% more than specified) and sold for slightly less expensive price (0.05% less than specified), this helps Pathfinder avoid roundabout transactions.
- Also see LVR assumptions
- Notes on changing default:
- If you have organisation assumptions, you can set different default values, and also add new Profiles.
- You cannot edit this values within a case.
| Profile | Capital growth %pa | Distribution/Income %pa | % franked3 | Fees%4 | % growth assets |
|---|---|---|---|---|---|
| Alternative | 3.9 | 2 | 0 | 0 | |
| Australian bonds | 0.06 | 4.07 | 0 | 0 | |
| Australian equities (direct) | 3.36 | 3.98 | 80 | ||
| Australian equities (trust) | 3.36 | 3.98 | 80 | ||
| Balanced | 2.08 | 3.9 | 0 | 60% growth assets | |
| Capital protected 70% growth fund | 2.13 | 3.68 | 0 | Capital guarantee Entry fee: 2% Capital guarantee fee: 1.8% | |
| Capital protected 85% growth fund | 3.04 | 3.86 | 0 | Capital guarantee Entry fee: 2.1% Capital guarantee fee: 2% | |
| Cash (direct) | 0 | 3.53 | 0 | 0 | |
| Cash (trust) | 0 | 3.53 | 0 | 0 | |
| Conservative | 1.28 | 3.99 | 0 | 0 | 40% growth assets |
| Defensive | 0.56 | 3.98 | 0 | 0 | 20% growth assets |
| Emerging market equities | 5.21 | 2.64 | 0 | 0 | |
| Growth | 2.77 | 3.83 | 0 | 0 | 80% growth assets |
| Hedge fund aggressive | 4.9 | 1 | 0 | 0 | |
| Hedge fund conservative | 4.9 | 1 | 0 | 0 | |
| High growth | 3.56 | 3.91 | 0 | 0 | 100% growth assets |
| Infrastructure | 4.18 | 3.16 | 0 | 0 | |
| International bonds | 0 | 4.02 | 0 | 0 | |
| International equities | 2.5 | 2.88 | 0 | 0 | |
| Listed Australian property | 0.63 | 5.65 | 0 | 0 | |
| Listed International property | 2.66 | 4.01 | 0 | 0 | |
| Precious metals | 2.5 | 0 | 0 | 0 | |
| Secure | 0 | 3.53 | 0 | 0 | 0% growth assets |
3If Franking credits are blank, it is assumed franking credits are included in the returns.
4Where fees are zero, it is assumed the returns are after fees.
LVR assumptions
These values are pre-filled, but you can override them for any case.
| Owner | Shares | Property | Family home |
|---|---|---|---|
| Individual | 50 | 80 | 80 |
| SMSF | n/a | 50 | n/a |
| Trust | 50 | 80 | 80 |
Superannuation investment option returns
- Returns are after tax.
- Notes on changing default:
- If you have organisation assumptions, you can set different default values and add new Profiles.
- You cannot edit these values within a case
| Accumulation phase total return %pa | Pension phase total return %pa | Fees5 | % growth assets | |
|---|---|---|---|---|
| Alternative fund | 5.2 | 5.9 | ||
| Australian bonds | 3.51 | 4.13 | ||
| Australian equities (direct) fund | 7.57 | 8.71 | ||
| Australian equities (trust) fund | 7.57 | 8.71 | ||
| Balanced fund | 5.18 | 5.98 | 60% growth assets | |
| Capital protected 70% growth fund | 5.04 | 5.8 |
| |
| Capital protected 85% growth fund | 6.02 | 6.9 |
| |
| Cash (direct) fund | 3 | 3.53 | ||
| Cash (trust) fund | 3 | 3.53 | ||
| Conservative fund | 4.55 | 5.27 | 40% growth assets | |
| Defensive fund | 3.89 | 4.54 | 20% growth assets | |
| Emerging market equities fund | 6.93 | 7.85 | ||
| Growth fund | 5.74 | 6.6 | 80% growth assets | |
| Hedge fund aggressive fund | 5.3 | 5.9 | ||
| Hedge fund conservative fund | 5.3 | 5.9 | ||
| High growth fund | 6.53 | 7.47 | 100% growth assets | |
| Infrastructure fund | 6.45 | 7.34 | ||
| International bonds | 3.42 | 4.02 | ||
| International equities fund | 4.7 | 5.38 | ||
| Listed Australian property fund | 5.37 | 6.28 | ||
| Listed International property fund | 5.8 | 6.67 | ||
| Precious metals | 2.25 | 2.5 | ||
| Secure fund | 3 | 3.53 | 0% Growth assets |
5Where fees are blank, it is assumed returns are after fees.