It could be just the boost your super needs
Salary sacrificing is where your employer agrees to pay a certain amount of money into your super from your before-tax pay instead of paying that amount to you as salary. There are advantages to contributing to your super this way, but there are also a few disadvantages.
Advantages
- you don’t pay income tax on your super contributions as they are coming out of your before-tax salary
- you will generally pay less income tax and your take-home pay may increase
- you can salary sacrifice standard member contributions, compulsory contributions and extra contributions, if your employer will allow it
But remember
- you will have less going into your super unless you pay in extra amounts to offset the 15% contributions tax deducted on the way into super
- salary sacrificed amounts are not eligible to receive the Australian Government’s super co-contribution
Making your decision
Our knowledgeable staff can help you decide whether salary sacrifice is right for you. We can show you the effect salary sacrificing could have on your salary and super account. Or, check out our Extra contributions calculator to see the various impacts of making your extra contributions through salary sacrifice or from after-tax money.
If you would like to salary sacrifice, talk to your payroll area to find out if it is possible and how to get started.
More information
The information about salary sacrifice above is general information only and does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
