Salary sacrificing to super refers to your employer paying some of your salary to your super account instead of your take-home pay.
You can ask your employer to organise this for you. Super contributions you make through salary sacrifice are in addition to the contributions your employer is required to make for you.
Salary sacrifice contributions are deducted from your salary before you’ve paid income tax, so this super is taxed at 15%, which is generally lower than your marginal tax rate.
Find out the big difference even small changes can make with our Contribution planner.
How much can I contribute?
You can build your super through before and after-tax contributions, but should be mindful that there are limits to how much you can contribute within super’s concessional tax rates.
Also, once you reach age 75, the Government generally prevents you from making any personal contributions to your super.
Consider speaking to a qualified financial adviser, your accountant or a registered tax agent first to see whether a salary sacrifice arrangement will work for you.
Salary sacrificing and the Defined Benefit Division (DBD)
Things work a little differently for DBD members, so it’s worth checking the Defined Benefit Division and Accumulation 2 Product Disclosure Statement before making a decision about salary sacrificing.