SALARY SACRIFICE

Salary sacrifice is an arrangement where your employer makes contributions into your super before tax on your salary is deducted. This reduces your assessable income for tax purposes.

Key Benefits of Salary Sacrifice

Salary Sacrifice contributions are subject to 15% tax, whereas savings outside of super are subject to your marginal tax rate of up to 46.5%
Salary Sacrifice reduces your assessable income for tax purposes, which could mean a lower tax bill.
Salary Sacrifice alllows you to grow your super account gradually without significantly impacting on your lifestyle.

Salary sacrifice tends to have more significant benefit for people who have an annual income above $35,000, or have an income tax rate above 15%. As you will have different income levels throughout your life, Salary Sacrifice may suit you only at certain stages in your life. There are also a number of tax and contribution cap factors to take into account.

Taxation savings based on your salary:
Annual salary	Marginal tax rate	Super contribution tax rate	Tax saved on amounts salary sacrificed
$6,001 -- $37,000	15%	15%	1.5% (Medicare levy)
$37,001 -- $80,000	30%	15%	16.5% (including Medicare)
$80,001 -- $180,000	37%	15%	23.5% (including Medicare)
Over $180,001	45%	15%	31.5% (including Medicare)

To salary sacrifice: Give this request form to your payroll officer who will make the arrangements for you. (Not all employers offer salary sacrifice, so please check with your employer that it is available to you.)

To find out if Salary Sacrifice is for you: Use the Salary Sacrifice Calculator, or get more information from our Salary Sacrifice Fact Sheet.

For more information or assistance, please call our friendly Member Services team on (03) 9911 3222 (regional callers 1300 300 820) or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

SALARY SACRIFICE

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