Salary Sacrifice

Salary sacrifice can be an effective method of boosting your super while reducing your tax along the way.

Salary sacrifice is an arrangement with your employer where you agree to have a portion of your pre-tax salary paid into your super instead of being paid to you as ordinary income. This is also known as a concessional contribution. Depending on how much you earn, this can be a tax-effective way of topping up your super.

Salary sacrifice contributions aren’t subject to income tax but are instead taxed at 15%. Considering the marginal tax can be as high as 45%, the savings you can make by salary sacrificing - provided you stay within the contribution limits - can be significant.

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