SALARY SACRIFICE

To help boost your super you can make personal contributions.

 

Salary sacrifice is an arrangement between you and your employer in which you choose to give up or 'sacrifice' part of your before-tax salary to add it directly into your super. The sacrificed income is a superannuation contribution and taxed at 15%.

 

Salary sacrificing contributions, also known as concessional contributions, effectively reduce your gross taxable salary which may assist in reducing how much income tax you need to pay.

 

Limits apply to the amount of concessional contributions that can be paid each financial year. Where contributions exceed these limits extra tax is payable.

 

Salary sacrificing into super may not suit everyone. You should consider the possible impact on your financial situation as a result of reducing your salary and seek advice.

 

To see how effective salary sacrifice might be for you use our Salary Sacrifice Calculator.

 

For further information please refer to Fact Sheet FS12 Contribution Options - Boost Your Super.