Salary Sacrifice is an arrangement between you and your employer, where you can transfer part of your before tax salary into super to gain tax benefits.
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How does this benefit me?
If you earn over $6,000 a year you start paying income tax, which can be as high as 46.5%. Salary sacrifice into your super lets you put your salary into super at a contribution tax rate (CTR) of a flat 15%. The amount of your taxable income is therefore reduced and may drop to a lower Marginal Tax Rate (MTR). Salary Sacrifice can give you a bigger bang for your buck to help meet your retirement goals.
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Taxation savings based on your salary:
Marginal tax vs. Contribution tax rates
| $6,001 -- $37 K |
MTR 15% |
vs. |
CTR 15% |
= Save 1.5% (Medicare levy) |
| $37,001 -- $80K |
MTR 30% |
vs. |
CTR 15% |
= Save 16.5% (including Medicare) |
| $80,001 -- $180K |
MTR 40% |
vs. |
CTR 15% |
= Save 26.5% (including Medicare) |
| $180,001+ |
MTR 45% |
vs. |
CTR 15% |
= Save 31.5% (including Medicare) |
More on Salary Sacrifice
Call our Member Services team on (03) 9911 3222 (regional callers 1300 300 820) for more information.
