By giving up a portion of your pre-tax salary you can reduce your tax burden while simultaneously growing your retirement savings!

Grow your super using salary sacrifice

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 your marginal rate the more you can save by salary sacrificing.

How much can I salary sacrifice?

The concessional contribution limit – which includes both salary sacrifice and Superannuation Guarantee (SG) contributions from your employer – is $25,000 per year. Any contribution that exceeds that amount will be taxed at your marginal rate.

Salary sacrifice calculator

Salary sacrifice reduces taxable income while growing your retirement savings. Use our salary sacrifice calculator to see how much you can contribute and how much you could save!


Things to consider before you salary sacrifice

Is salary sacrifice available to you?

While the majority of Australians can put some of their pre-tax salary into super, not all employers offer the option. It’s best to check with your employer to ensure it’s possible.

Verify that salary sacrifice is in addition to SG

You should verify with your employer that any salary sacrifice amount from you will supplement your employer’s SG contributions and not replace them.

Check it's right for you

There can be many different aspects of your finances that are impacted by the decision to salary sacrifice, and it may not be right for every circumstance – we recommend that you receive professional financial advice before making a decision. 

Set up a salary sacrifice arrangement with your employer

Getting started saving on tax – and saving for your future – is easy. Either speak with your employer about increasing the amount contributed to your super or give them a copy of this form: