Salary sacrifice is when your employer pays some of your salary into your super, before tax has been deducted.
In addition to helping your super grow, salary sacrifice contributions could help reduce the income tax you pay, especially if you’re a high income earner.
How to make salary sacrifice contributions
Talk to your employer if you want to set up salary sacrifice contributions and they’ll be able to help you.
We can accept your contributions if you’re:
- Under age 65
- Between age 65 and 75 and have been gainfully employed for at least 40 hours in 30 consecutive days during the financial year in which you want to make the contribution.
How much can you contribute?
For the 2017-18 financial year, the limit on the amount of concessional contributions that any individualcan make at the concessional rate is $25,000 per financial year.
Keep in mind that these limits (the Concessional contribution caps) include your Superannuation Guarantee contributions made by your employer. Extra tax will apply to any amount paid into your super that’s over the limit.
individuals with a taxable income greater than $250,000 pa will pay 30% tax on their concessional contributions.
Are you receiving Government assistance?
Remember that salary sacrifice contributions form part of your total assessable income, which means they’ll be included in your assessment for many government assistance programs, including:
- Income support payments
- The Government’s co-contribution scheme.
For more detailed information, download the How super works booklet.
Want to talk to someone about making contributions? Call our friendly Client Services team on 1300 65 18 65.
For personalised advice tailored to your needs, consider talking to a Financial Planner.
The information provided is of a general nature. It does not consider your specific objectives, financial situation or needs nor is it intended to be financial product advice. You should consider the appropriateness of this general advice with regard to your personal circumstances, obtain independent financial advice and consider the applicable Product Disclosure Statement before making an investment decision.