EOFY Tips – Get more from your salary or bonus

Financial Planning

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.

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Disclaimer

Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making  any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.