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.

Double contributions tax for high-income earners

Note: Currently, anyone earning an adjusted taxable income of more than $300,000 pays an extra 15% tax (total of 30%) on super contributions. The ALP has announced a policy to bring the income thresholds down to $250,000. The rumour is that the Coalition plans to reduce the income threshold to … [Read more...]

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

Note: In rare bipartisanship, the ALP supported the Coalition’s decision to temporarily increase the marginal tax rate by 2 percentage points for those Australians earning more than $180,000. The higher tax rate became law, and applies from 1 July 2014 until 30 June 2017 (3 financial years).In … [Read more...]

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...]

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...]

Contributions caps: Which financial year do I use for my salary sacrifice contributions?

Q: I salary sacrifice into my super, and I am planning for the rest of the financial year. If I make my super contribution for the month of June 2016, and the super fund does not register receipt of that super contribution until July 2016, will this contribution fall under the 2015/2016 financial … [Read more...]

Super alert: Have you counted your super contributions lately?

Note: This article outlines the super contribution rules, and also provides a list of helpful articles that explain how the two types of contributions caps work, and the general contribution rules.You can make two types of super contributions: concessional (before-tax) contributions and … [Read more...]

Excess contributions: Happy ending to a super horror story

Note: This article contains good news for those worried about exceeding the super contributions caps. The excess contributions rules are now a lot fairer than in the past. This article also explains the unfair rules that used to be in place before July 2013.You can make two types of super … [Read more...]

Super concessional (before-tax) contributions: 2015/2016 survival guide

This article explains all of the important rules that apply to concessional (before-tax) super contributions.Superannuation contributions can be divided into two types — concessional (before-tax) and non-concessional (after-tax). Each type of super contribution is subject to a contributions cap. … [Read more...]