Salary sacrifice — an easy way to boost your super and reduce your income tax bill.

How does it work?

When you decide to salary sacrifice to super, you make an arrangement with your employer.

You agree to reduce your gross, pre-tax salary by a certain amount. Your employer uses that money to increase their super contributions to your account. For full details, download How super works.

Why do it?

Amounts you salary sacrifice to super are generally taxed at 15%, which may be lower than your income tax rate. It also reduces your taxable income creating further tax savings.

Use our salary sacrifice/co-contribution calculator to see the difference a salary sacrifice could make to your super.

How do I get started?

Before you enter into a salary sacrifice agreement with your employer:

  1. download and read How super works
  2. get financial advice to make sure this option suits your needs and meets the current tax requirements
  3. confirm with your employer whether any entitlements such as overtime, unused annual leave or Super Guarantee contributions will be calculated on your full salary (before salary sacrifice) or your adjusted salary (after salary sacrifice)
  4. make sure you don't reduce your net salary below the level required under an employment award or agreement.

When you’re ready to start your salary sacrifice to super, speak to your employer.

Will it affect my government benefits?

Salary sacrifice contributions to super are included in the income assessments for many government assistance programs, including income support payments and the superannuation co-contribution.

This means that any amount you salary sacrifice will be included in your income assessment for that benefit.

For more details, download How super works.


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