Salary sacrifice super This is known as a salary sacrifice or salary packaging.
Salary sacrifice super. Even small amounts add up, thanks to the snowball effect of compound interest. Jul 29, 2022 · Employers can set up a salary sacrifice for super arrangement with their employee to benefit from a salary sacrifice. The payments, called concessional contributions , are taxed at 15%. com Jun 9, 2023 · Not only does salary sacrificing super reduce your employees’ taxable income while simultaneously growing their retirement fund, it’s also another way that employers can reduce the gender pay gap. Salary sacrificing money into your super account is one strategy you can use to boost your savings for retirement, and it may allow you to pay less tax. See full list on australiansuper. For most people, this will be lower than their marginal tax rate. By redirecting pre-tax income into your super, you can significantly lower your annual tax bill while accelerating the growth of your retirement nest egg. Salary sacrifice is an arrangement with your employer to make additional superannuation contributions from your pre-tax salary each pay cycle. This strategy reduces your taxable income and allows more of your money to grow inside the low-tax super environment. Aug 7, 2025 · A: Salary-sacrificing into superannuation involves an agreement between you and your employer whereby part of your salary is paid into your super fund from pre-tax earnings. Dec 5, 2023 · For many Australians, salary sacrificing part of their pre-tax income into superannuation is a smart way to save money for retirement and benefit from favourable tax treatment. May 8, 2023 · Boost your superannuation and save on taxes with salary sacrificing super! Discover the benefits and how-to's in our easy-to-understand guide. Conclusion Salary sacrifice super is a powerful and proven 2025 tax strategy for any Australian looking to be smarter with their money. . Jun 9, 2025 · Salary sacrificing for employees Find out what salary sacrificing is, how to set up an effective arrangement and the tax implications of an arrangement. Pre-tax super contributions: salary sacrifice You can ask your employer to pay part of your pre-tax pay into your super account. Jun 10, 2025 · Super salary sacrifice is a way of making extra contributions to your super before you're paid, and comes with tax benefits. In fact, recent superannuation statistics reveal that salary sacrifice contributions hit about AUD 2,129 million in March 2025. Salary sacrificing can be an effective way of increasing your super balance and saving for retirement while also delivering significant tax advantages. Let’s take a look at what salary sacrificing is, how it works, how much you can salary-sacrifice and the benefits. Salary sacrifice is a great way to add to your super and potentially pay less tax, depending on your income. View our salary sacrifice calculator for more. Your employer makes additional contributions on your behalf. Aug 2, 2023 · Learn how to use a salary sacrifice arrangement to reduce your taxable income and increase your super fund balance. The key is to plan ahead. Salary sacrificing into super is undoubtedly one of the most tax-effective retirement planning strategies. Jun 12, 2025 · Confused between salary sacrifice super and voluntary super contributions? Discover the tax, super growth, and retirement savings of each, and decide which option may be right for you. Jun 30, 2025 · How Does Salary Sacrifice to Super Work? Salary sacrifice is where you direct part of your pre-tax salary into superannuation, instead of receiving it as take-home pay. What is salary sacrifice? Salary sacrifice (or a before-tax contribution) is an easy way to make extra payments into your super. Here's how it works. This is known as a salary sacrifice or salary packaging. Find out the benefits, limitations and tax implications of salary sacrificing super contributions. These contributions are taxed at 15% instead of at your personal income tax rate. What is salary sacrifice? Salary sacrificing is a regular pre-tax contribution from your regular income into your superannuation and is taxed at the lower rate of 15% if your salary package is less than $250,000 per year. On your instruction, your employer sends a portion of your before-tax salary into your super account. Salary sacrificing is a major avenue for Aussies looking to boost their super, with substantial contributions being made every year. Salary sacrificing $50 of your pay a month into super, could mean an extra $27,300 in retirement*. ljmb frtfso vhhdym kfehex cghx cmopv unpanw gotc ffrrlt tblqbzfy
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