Salary Sacrifice

Employers are required to pay most employees 9.5% of their salary as a superannuation contribution (superannuation guarantee contributions). In addition to this contribution - and as long as it is within your super contribution limits - you may be able to make contributions via salary sacrifice.

Making a salary sacrifice contribution into your superannuation fund may be a tax effective way to reduce your personal taxable income and as such reduce the personal tax you pay. Salary sacrifice contributions are taxed at 15% (and 30% for high income earners) on entering your superannuation fund and must stay in superannuation until you reach preservation age.

This strategy will not be right for everyone, so please seek financial advice first.