Superannuation contributions made through salary sacrifice.
Salary sacrifice is an arrangement between you and your employer where you choose to 'sacrifice' part of your before tax salary and pay it directly into your superannuation account.
Contribution capsFrom 1 July 2012, the concessional contribution cap for all Australians will be $25,000 pa. For employees, this includes employer contributions (generally 9%) made on your behalf and contributions made via salary sacrifice.
For self-employed members, the maximum tax deductible contribution that you can make is $25,000 pa.
Anyone exceeding the cap will be penalised at the top marginal tax rate which is 46.5%. However, there may be scope to have the excess refunded to you and tax will be deducted at your marginal tax rate.
Super Co-contributionSalary sacrifice contributions may have tax advantages for you, however, the Super Co-contribution will not apply.
To be eligible for the co-contribution your personal contributions must be after tax.
Need more Information?Read more on our Salary Sacrifice Fact sheet.
To properly evaluate the best way for you to make contributions, you should seek professional financial advice.
Want to know more about salary sacrifice? Contact Us or call 1300 655 002 (Mon-Fri 8.00am-5.30pm AEST).