Salary Sacrificing

The benefit of making a salary sacrifice contribution to superannuation is that it is made from pre-tax rather than post-tax income and can result in significant tax savings, while boosting your superannuation benefits. Your cash flow can be affected by using this strategy; however there may be ways to overcome this problem.

As a general rule of thumb, there is very little tax benefit in making salary sacrifice or concessional contributions where taxable income for the year would be reduced below $30,000. This is due to the marginal tax rate for taxable income less than $30,000 is the same as the contributions tax rate of your super fund, being 15%.

It may still be worthwhile using salary sacrifice superannuation contributions to reduce assessable income to $28,980 where you may be eligible to receive the full Government co-contribution.


For further information on salary sacrificing contact: wealthcreations@blackmoreinvestments.com.au


This information has been written in general terms for the widest possible use and is intended as a guide only. The application of its contents of specific situations will depend upon the particular circumstances involved. Accordingly, readers should seek professional advice and not rely upon this publication as a substitute for that advice. Whilst all care has been taken in the preparation of this publication, we accept no liability for errors or omissions. The information provided on this web page is subject to change at any time.