For Queensland Government employees
‘Sacrificing’ your salary isn’t as scary as it sounds. Put simply, it’s when some of the salary that would usually go to your regular pay packet is diverted to your super instead.
Because it’s directly taken out of your salary before you’ve paid income tax, the super is taxed at 15%, not your marginal tax rate (which could be up to 47%).
It could reduce your taxable income too, so this calculator helps you see how much you could benefit from salary sacrificing your super contributions.
You have the option of reinvesting any savings you receive, and you can see what effect this will have by using the ‘match net pay’ button. It automatically works out how much you can salary sacrifice while maintaining the same take home pay. You can also adjust your investment using the +/- buttons to see the effect on your take home pay.
1. The contributions that employees of the Queensland Government or a related entity are required to pay to QSuper are called standard contributions. Only employees of the Queensland Government or a related entity make standard contributions. If you work for a non-Queensland Government employer, you’ll need to select 0% in the standard contributions field.
2. Contribution amounts are concessional (before-tax) contributions. Contribution caps apply.
Points to consider:
This calculator is only a guide.
You should check with your employer to confirm you’re eligible to salary sacrifice superannuation contributions.
This calculator assumes that members with State accounts are making a standard contribution of 5% to their accounts and that members with Police accounts contribute 7%. The contribution rate is fixed for members of these accounts, however they may not be the same as these defaults. You can override the calculator to reflect your personal contribution rate.
We’ve prepared this salary sacrifice calculator for general information purposes only. It’s based on 2015/2016 marginal tax rates, our interpretation of tax laws, and includes applicable levies. It uses the relevant PAYG withholding tax figures to calculate the tax payable.
Rounding will occur which may cause a variance to actual tax paid. This may be different from your final tax liability for the financial year.
If you have an Accumulation account, you’ll need to be aware of the 15% contributions tax, which applies to salary sacrifice contributions as they are paid into superannuation. From 1 July 2017, if your adjusted income1 exceeds $250,000, a tax rate of 30% will apply to concessional contributions above the $250,000 threshold. The contributions tax is not included in the above calculation and therefore less money than indicated would actually accumulate in your account. However, you could also increase your superannuation benefits by making additional voluntary contributions (just make sure you don’t go over the contribution caps though). For Defined Benefit members, the calculator automatically 'grosses up' contributions by 15% to cover this tax and ensure your multiple continues to accrue at the same rate as it would if you weren't salary sacrificing.
1. For the purposes of the contributions tax for high income earners, adjusted income includes taxable income (assessable income less deductions), net investment losses, net investment property losses, total reportable fringe benefit amounts, amounts on which family trust distribution tax has been paid and concessional contributions within the concessional contribution cap.
The calculator doesn’t replace personal financial advice and you should seek specific professional advice prior to acting on any information. We also recommend you read our disclaimer.