Salary Sacrifice

Salary sacrifice is an arrangement between you and your employer where you "sacrifice" some of your pre-tax salary to contribute to your super fund.

Although you might get a little less in your take home pay, it's a way of building your super while saving on tax.

Benefits of salary sacrificing

• You'll have more super when you retire
• The amount you salary sacrifice is taxed as an employer super contribution at 15%, instead of being taxed as normal income at your marginal tax rate

Interested in salary sacrificing?

Salary sacrifice is not a strategy that will benefit or suit everyone. Begin by finding out whether your employer offers this arrangement. Also, consider speaking with a financial advisor to determine whether it's appropriate for you.

In considering whether to salary sacrifice, you should be aware that from 1 July 2009 salary sacrifice contributions are counted as income for the purpose of income-tested government benefits, including co-contribution.