Salary sacrificing

You can arrange with your employer for salary sacrifice (pre-tax) contributions to be made to your super account on your behalf in lieu of salary. The rate at which you can contribute will generally be dependent on your arrangements with your employer. Making contributions on a pre-tax basis reduces the amount of Pay As You Go (PAYG) tax that you would normally have to pay. However, the Government’s 15% contributions tax is deducted from these contributions in the Fund.

Salary sacrificing is not suitable for everyone. If necessary, you should seek professional advice before making a decision.

For more detailed information, refer to our Pre (PAYG) tax guide - Effective 1 July 2009.