put yourself first

Growing your super and saving on tax aren't mutually exclusive - they go hand-in-hand through salary sacrifice. You'll be the one feeling the benefits of it later.

Grow your super

Tipping in some of your before-tax salary into your super could surprise you in the future. You can put in as little or as much as you can afford each financial year up to $27,500 (this includes employer contributions).

 

Save on tax

Before-tax salary put directly into super is only taxed at 15%. If this is less than your marginal income tax rate, you could save more in super than you would have if you chose to received it in your normal pay packet.

 

 

 

 

 
 
how does it work?
 
 
If you earn $75,000 per year...
your tax rate would be up to 34.5% on your income (this includes the Medicare levy).
 
Your super fund (that's us)...
only pays 15% contributions tax, instead of your 34.5%.
 
So, according to the above scenario... 
if you put more of your income into super before being paid, your taxable income will be less, which means lower tax rate on the money you're putting in.
 
 
 

 

So the choice is yours - $20 in your pocket now or $25* in your super.

 

 

For every $30 you earn before you're taxed...

 

 

you could get $20 in your pocket after tax...

 

 

OR $25 into your super account.

 

 

This could add up to a tidy sum for when retire.

 

could $30 really make a difference?

Every little bit helps. And over time, small amounts can really add up. If you contributed $30 from your before-tax income every week for 22 years, your super balance could be boosted by $38,400*.

next steps

Decide how much you want to put into your super from each pay,  then choose from the following ...

 
Talk to payroll about whether they offer salary sacrifice and how to set it up. Once it has been set up, your next payslip should show the amount you're adding to your super.
 
If your employer doesn't offer salary sacrifice then read the next section below, as you may still be able to contribute, if you're eligible.
 
 
Anyone can make contributions to their super directly and claim the deduction on their tax return.
 
This is ideal if your employer doesn't offer salary sacrifice or if you are fully (or mostly) self employed.
 
Once you've made your contributions, HESTA needs to be involved before you can claim a tax deduction from the Australian Tax Office (ATO).
 
Just complete this ATO form and mail it to us before (whichever comes first); 
  • the date you lodge your tax return, OR
  • the end of the financial year after the contribution was made, OR 
  • you withdraw your super from HESTA, OR
  • you commence an Income Stream.
We'll check your form and let you know that it's valid, so you can proceed with the relevant option above. If your form is not valid we will let you know next steps.
 

 

 

For more information on ways you can add to super, contribution caps and much more, read How super works.

Download PDF

 

 

 

* We've rounded some numbers... but this is based on an individual aged 45 years old, with a retirement age of 67, currently earning $75,000 p.a increasing 2.5% a year. By contributing an additional $30 per week to super from their before-tax income and assuming a return of 6.0% (net of investment fees and costs). The additional contributions boost their super balance by $38,400 in today's dollars. All future values are discounted by inflation rate of 2.5% p.a. To see how additional contributions could help save for retirement, use one of the HESTA calculators.
 
This example is an illustration only and is not guaranteed in any way. Actual outcomes may differ.
If you salary sacrifice, it may impact the amount of super your employer pays. To find out more visit the ATO website.
If you are a low income earner, there may be little to no advantage salary sacrificing. After-tax contributions may be another option for you.
 
 
 

Need some expert help with contributions?

Our super advisers can help work out a contribution strategy that's right for you. You can see a super adviser at no extra cost: it’s all part of being with HESTA.