Super02 September 2019

Make your money work harder

Candice
Candice
Author

Sacrificing your salary to your super isn’t as scary as it sounds. It’s simply where you and your employer agree to divert some of your pay to your super account, potentially saving you tax while giving your super a boost.

How can I start salary sacrificing?

To get started, you’ll need to make arrangements with your employer. So to help, we’ve prepared an email you can send straight to your payroll department. You may need to follow-up with them to find out if they’ve got any extra requirements.

Email your employer

If the above link doesn't work for you, please speak with your employer about how to set up salary sacrificing.

See how it worked for Louise

Louise earns $50,000 before tax each year. She asks her employer to salary sacrifice $100 each fortnight into her Tasplan Super account. Her take-home pay reduces by $65.50 each fortnight, but her Tasplan Super account increases by $85 each fortnight.

So, Louise will benefit from:

  • saving about $504 in income tax
  • adding an extra $2,210 to her Tasplan Super account each year.

Is salary sacrifice for everyone?

Salary sacrifice isn’t right for everyone. You may benefit more from making personal contributions. Use MoneySmart’s Super contributions optimiser to see which type of super contribution will give your super the biggest boost.

Watch out for the contribution caps

Remember there are caps on how much you can contribute to super. If you exceed these caps, you may pay extra tax. Learn more.

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