Salary sacrifice and your super

An important consideration in building your super balance is to salary sacrifice your earnings to make additional contributions to your super.

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Your employer can make additional super contributions by salary sacrificing your part of your earnings. This are treated as concessional contributions, taxed at 15% in the superannuation fund. However, this is compared to your marginal income tax rates if this was not sacrificed.

Potential benefits for the regular salary sacrificed superannuation payments include an acceleration of growth of your super balance (which would  make a big difference at retirement) and this will lower your taxable income and may help you pay less tax, stay in a lower tax bracket, reduce the Medicare Levy or qualify you for certain concessions, etc

 

 

 

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The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.