Salary sacrifice means you pay some of your pre-tax salary into your super account. As well as boosting your super balance, salary sacrificing can potentially reduce your tax rate.
What are the benefits?
1. Your super balance grows faster, and benefits from compound interest.
2. You pay less tax on your additional contributions (15% rather than marginal income tax rate).
How do I start making contributions?
Simply contact the payroll office at your work and let them know you’d like to start salary sacrificing.
We've prepared a form you can use.
Download a salary sacrifice form. Click Here.
The earlier you start, the better
When you salary sacrifice you benefit from compound interest. Which means the earlier you start the more it's likely to benefit your future super balance.
While you can start salary sacrificing at any time, doing so when you're younger could make a significant difference to your super balance over the long term. That's the power of compound interest.
Things to consider:
• You can make $25,000 in contributions to your super every year before the marginal tax rate applies.
• Salary sacrifice is in addition to your mandatory 9.5% superannuation guarantee contributions.