HOW DO I…make salary sacrifice contributions to my super?
Things to know before you start:
- Salary sacrifice contributions are made from your pre-tax salary, so these arrangements are made with your employer, rather than directly from you to the fund.
- Tax generally applies to these contributions.
- There are caps, or limits, on the amount that can be contributed to super without incurring additional tax. Salary sacrifice contributions are included as concessional contributions (along with your employer’s contributions) for the purposes of the caps. It is your responsibility to ensure that you do not breach the caps if you want to avoid paying excess tax.
- Although salary sacrifice contributions reduce your taxable income, these contributions are still included in the definition of ‘income’ relating to eligibility for some government benefits.
- The following applies only for Accumulate Plus accounts.
Talk to your employer’s HR or Payroll team for details of how to start this type of contribution.