‘Salary sacrificing’ your super isn’t as scary as it sounds. Put simply, it’s when some of the salary that would usually go into your pay packet is added to your super instead.
Salary sacrifice can be a great way to pay extra money into your super and save on tax. These extra contributions are on top of what your employer already puts in, so it can really add more to your super over the long term.
Save on tax while boosting your super
Because the extra payments are directly taken out of your salary by your employer before you’ve paid any income tax, they’re only taxed at 15%1 – not your marginal tax rate (which could be up to 49%2). It means you could pay less tax on those payments!
A little extra can make a big difference
Making any extra contributions to your super can really add up over time and make a difference to your future lifestyle.
Better still, by starting early you may be able to put tens of thousands of extra dollars towards your retirement. So the sooner you start, the bigger the rewards.