Salary sacrifice – it’s like getting a super fix instead.

What would happen if you put the money you’d normally use for your daily caffeine fix into your super instead?

By making a before-tax contribution from your pay of $30 a week (about the cost of a take-away coffee each day), you’d be surprised at how much you could grow your super in the long run. Plus, you’d be paying less tax.

                                                    Less caffeine = more super

Weekly salary sacrificeDecrease in take-home payAnnual income tax savingSuper balance at age 67 without salary sacrificeSuperbalance at age 67
with salary sacrifice
Difference in Super
$30 $19.65 $538 $573,339 $631,503 + $58,164

                                                or be brave and go cold turkey!

Weekly salary sacrificeDecrease in take-home payAnnual income tax savingSuper balance at age 67 without salary sacrificeSuperbalance at age 67
with salary sacrifice
Difference in Super
$75 $48.96 $1,354 $573,339 $718,749 + $145,410

Assumptions: 30 years of age, $25,000 superannuation invested in MySuper Balanced, $70,000 annual income, 9.50% employer SG contribution increasing to 10% from 1 July 2021, 7% p.a. investment earnings net of fees, indirect cost ratio of 0.43% pa, administration fee of $1.50 per week plus 0.22% p.a of account balance, 0.32% investment fee, $132.60 p.a. insurance premium and average 3% inflation rate p.a. (All fees are net of tax). 
The above projections are meant as an estimate only and are not intended to be used for practical purposes. Actual outcomes will depend on a range of factors outside our control. It is not intended to be used as a substitute for professional financial advice. 

Salary sacrificing is a tax-effective way to boost your super
You’ll pay just 15% tax on your before-tax contribution instead of your normal income tax rate (which for most people is between 32.5% and 45%, excluding the Medicare levy).

Setting this up with your employer is easy!

Contact your payroll officer or complete the Payroll Deduction Form and hand it to them.

Any questions? Call us today on 1300 130 780. 

Please note: the annual concessional (before-tax) contribution limit is $25,000. This limit includes your employer Superannuation Guarantee (SG) and salary sacrifice contributions. Excess concessional contributions will be taxed at your marginal tax rate less 15% payable to the Australian Taxation Office.