Super Toolbox
Salary sacrifice
Please read our general advice warning »
You may be able to negotiate with your employer to pay a portion of your salary directly into your super account from your gross income.
Your employer will make the payment directly to MTAA Super and the Fund deducts the government's 15% contributions tax. This is a lot less than the highest marginal tax rate of 46.5% (including Medicare levy), and often less than other income tax thresholds for incomes above $35,000p.a.
These contributions will count towards your annual concessional limit of $25,000 (or $50,000 if you are over 50). This limit applies per member, not per fund. As such you must ensure that the sum of these contributions and any Superannuation Guarantee (SG) contributions your employer makes for you do not exceed this limit. Where these contributions do exceed this limit, they will be taxed at the top marginal tax rate.
We recommend that you seek independent financial advice before entering into any such arrangement.
Enjoy the tax benefits |
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Robert has a salary of $40,000 pa and salary sacrifices $3,000 of his income each year, which could save him up to $1,065 in personal income tax and will boost his retirement nest egg. (Source:IFFP) |
How to get started
Simply contact your employer and discuss a salary sacrifice arrangement.