Boost your super
Would you like to start contributing more to your super?
Adding contributions to your super directly from your pre-tax salary can be an easy, tax-effective way to top up your super. This is called salary sacrifice.
What you need to know
When you put in a place a salary sacrifice arrangement, your payments will be made automatically by your employer. So it’s an easy way to get into a good habit. Plus you may be able to save on tax:
- You do not pay income tax on salary sacrifice contributions to super which can represent a significant tax saving particularly if you are on the highest marginal tax rate
- Sacrificing a portion of your pre-tax salary into superannuation could enable you to lower your tax bracket and, thus, reduce the overall amount of tax you pay
- When you pay less tax, you have more money to invest which gives you the potential to increase your returns
- Make sure that your employer will allow you to salary sacrifice, and that your employer won’t reduce the amount of super guarantee contributions they pay on your behalf.
You should also ensure that salary sacrifice plus superannuation guarantee contributions you make won’t exceed the annual cap on concessional contributions.
A Financial adviser can help you:
- Put in place a salary sacrifice arrangement
- Boost your super using smart super strategies