Use salary sacrifice to boost your super and reduce tax.
Are you an employee?
Would you like to tax-effectively increase your retirement savings?
How does it work?
If you’re an employee, you can often enter into a salary sacrifice arrangement with your employer whereby you choose to give up or ‘sacrifice’ part of your before-tax salary and add it directly to your super account.
What does it mean for me?
If your marginal tax rate is more than 15%, salary sacrificing into super will reduce the tax you pay and help give your retirement savings a valuable boost. This is because salary sacrifice contributions within your concessional contributions cap are taxed at a flat 15% rather than your marginal tax rate. However, you should remember that you generally can’t access your super money until you reach your preservation age (currently age 55) and you are permanently retired from the workforce.
For more details please open the link below for the full article or call us on 8272 6444 to discuss.