Salary sacrifice

Salary sacrifice (or salary sacrificing or salary sacrifice arrangement) refers to including before-tax superannuation contributions as part of a salary package, which then reduces a person’s taxable salary and the amount of income tax payable.

Set out below are all SuperGuide articles explaining Salary sacrifice.

Salary-sacrificed contributions count for Family Tax Benefit

Q: I was wondering what you know about salary sacrifice super being included in Family Tax Benefit family income calculations?A: Since 1 July 2009, salary sacrificed super contributions have been included when assessing income for the Family Tax Benefit (FTB). The income test used for the FTB is … [Read more...]

Making super contributions: 20 popular Q and As

We receive many interesting questions from readers. We believe this contact with our readers makes our SuperGuide site even more useful for readers because we enhance the SuperGuide website in response to the popularity of certain articles and topics, and in response to the types of questions that … [Read more...]

Salary sacrificing will not increase co-contribution entitlement

Q: I understand salary-sacrificed super contributions must be added back in to assessable income for co-contribution purposes. Do you know anything about this?Yes, your understanding is correct. Salary sacrificed contributions count towards the co-contribution income test, and this has been the … [Read more...]

Superannuation contributions: Wearing two caps

Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $30,000 concessional and $540,000 non-concessional sums (a total contribution of $570,000) to my super fund for the 2015/2016 year?A: ‘Yes’ is the answer to the … [Read more...]

SMSF trustees: Is your super fund ready for SuperStream?

If your SMSF receives super contributions from an employer, or employers, on behalf of SMSF members, then your self-managed super fund should be SuperStream-ready… yesterday!If you have just set up your SMSF and seeking information on how to make your SMSF SuperStream-ready, continue reading, … [Read more...]

Transition-to-retirement pensions: Will TRIPs stay or will they go?

Q: It was reported on the radio that the government is going to "look" at transition to retirement strategies for middle and high income earners. Do you have any info on this? What would it mean to people who are already transitioning?A: Government ministers seem to make a lot of unofficial … [Read more...]

Does the government’s co-contribution count towards my contributions cap?

Q: Does a co-contribution received after using up the total bring forward cap of $540,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap?A: A superannuation co-contribution is a super contribution paid by the … [Read more...]

Superannuation Guarantee: Many Aussies miss out on SG increase

Now that we are well into the second financial year of a higher Superannuation Guarantee rate of 9.5%, you can expect some difficult conversations between employers and employees in coming months as some salaried employees discover that the Superannuation Guarantee (SG) increase of 0.25%, which took … [Read more...]

Superannuation Guarantee: 10 facts about your SG entitlements

Note: The Superannuation Guarantee rate for the 2015/2016 year is 9.5% (from 1 July 2015 to 30 June 2016). Effective since 1 July 2014, the SG rate increased to 9.5% (from the 9.25% that applied for the 2013/2014 year). The SG rate will now remain at 9.5% for another 6 years, increasing to 10% from … [Read more...]

Superannuation Guarantee: What is the maximum SG employers must pay?

Q: I am earning a salary of $200,000 plus super. I am aged 42. I understand a maximum contribution level applies based on a 9.5% SG contribution, before the balance up to $30K limit can be made on a salary sacrifice basis. Can you please confirm what the maximum SG contribution is allowed to be for … [Read more...]