Salary sacrifice is one way that you can build your superannuation balance while reducing your tax burden.
Because pre-tax (concessional) contributions are generally taxed at 15%, you will likely pay less than your marginal tax rate. As a general rule, the higher you marginal rate the more you can save by salary sacrificing.
How much can I salary sacrifice?
The concessional contribution limit (including salary sacrifice and Superannuation Guarantee (SG) contributions) is $25,000 per year.
Any contribution that exceeds that amount will be taxed at your marginal rate.
Is salary sacrifice available to you?
It's best to check with your employer to ensure it's possible.
Verify that salary sacrifice is in addition to SG
Verify with your employer that any
salary sacrifice addition to your Superannuation Guarantee (SG)
and not replace it.
Check that it’s right for you
We recommend that you receive financial advice before making a decision to ensure salary sacrifice is right for you.