Wage and salary earners pay income tax based on marginal tax rates, which range from 19% to 45%, plus the 2% Medicare Levy.
By arranging with your employer to pay part of your salary into super rather than your bank account, only the 15% contributions tax is payable.
This means you pay less income tax and have more money working for you in your super account.
If you earn more than $250,000, extra contributions tax may be payable.
Salary sacrifice can be a great way of growing your super, but it isn’t for everyone.
Here’s a list of things to look out for:
Some people may prefer to make personal contributions to super from their after-tax pay, then claim the contribution as a tax reduction.
Salary sacrifice is an arrangement between you and your employer so speak to your payroll area to find out how to get started.
Like to learn more about how salary sacrificing works and how it could benefit you and your super? Let us know and one of our advisers will be in touch.
See how different tax rates apply to different parts of your super.
Crunch the numbers and see how salary sacrificing can work for you.
There’s lots of unclaimed super floating around and some of it could be yours.