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.

Defined benefit fund members: Are we subject to contributions caps?

Q: My question is about a member’s notional superannuation account’s yearly value amounts. Are these “Notional amounts” that the (long time) employee will receive, but not yet physically accrued in their superannuation account? Are they then included in the individual’s concessional cap? If they … [Read more...]

10 super planning tips for 2015/2016 year-end

Although many people are still reeling from the unexpected superannuation announcements in the 2016 Federal Budget, it’s important to note most of the planned changes will not affect your superannuation decisions for the 2015/2016 year. The Superannuation Guarantee (SG) rates remain the same, … [Read more...]

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

On 3 May 2016, in the 2016 Federal Budget, the Liberal government announced that, from 1 July 2017, it intends to remove the tax exemption on pension fund earnings financing a transition-to-retirement pension (TRIP).If the Liberal government is successful at the July 2016 Federal Election, then … [Read more...]

Double contributions tax for more high-income earners

Note: Currently (and until 30 June 2017), anyone earning an adjusted taxable income of more than $300,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. In April 2015, the ALP announced an election policy to bring the income thresholds down to $250,000, and on … [Read more...]

Temporary Budget Repair Levy: More income tax for high-income earners until June 2017

Note: In the 2016 Federal Budget, the Coalition confirmed it would cease the TBRL as legislated, but the ALP has announced that it would re-introduce the levy if it won the 2016 Federal Election on 2 July. Previously, in rare bipartisanship, the ALP supported the Coalition’s decision to temporarily … [Read more...]

Super contributions: Over-50s concessional cap (10 Q&As)

In this article, you can find the answers to 10 popular questions received by readers on the concessional (before-tax) contributions cap for over-50s.For a comprehensive guide on concessional contributions, see SuperGuide article Super concessional (before-tax) contributions: 2015/2016 survival … [Read more...]

Concessional contributions: SG and public servants

Q: I’m a member of a public sector fund, which is a hybrid defined contribution/defined benefit scheme. While I pay 5% of salary towards a ‘Member Benefit’, the super fund doesn’t have a 9.5% employer contribution, as my ‘Employer Benefit’ is based on years of service and Final Average Salary. I’m … [Read more...]

Want to make 50% return on your super money?

If you earn less than $50,000 or so a year, or your spouse or children earn less than $50,000 or so a year, then you, or your spouse, or child, have a window of opportunity within the next few weeks (by June 2016) to potentially make a 50% return on your money when you make an after-tax super … [Read more...]

How is contributions tax deducted from salary sacrifice super contributions?

Q: If I choose to salary sacrifice some of my income into my super account, is the 15% taxed separately on the salary sacrificed super, and then another 15% on amount my employer contributed, or are the two added together then the 15% tax deducted?The contributions tax is generally deducted by … [Read more...]