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.

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...]

Upper limit on SG contributions (for 2015/2016 year, and for previous years)

Note: This article explains the maximum superannuation contribution base for the 2015/2016 year, for the 2014/2015 year, and for previous years.The maximum superannuation contribution base is used to determine the maximum Superannuation Guarantee (SG) contribution that an employer is required to … [Read more...]

Four reasons to buy insurance via your super fund

Choosing the right level of insurance cover within your super fund is one of the three big decisions you make when joining a fund, along with choosing your investment options, and deciding how much you want to contribute to your fund.I explain the types of insurance options available within your … [Read more...]

More retirees eligible for Seniors Health Card (CSHC), but harsher income test

Effective since 20 September 2015, the income test thresholds for the Commonwealth Seniors Health Card (CSHC) have increased again, in line with the federal government’s promise to index the thresholds annually.CSHC income thresholds are now indexed annually in line with CPI (inflation). The … [Read more...]

Super for beginners, part 22: How do you speak ‘superannuation’ (… in 20 words)?

Many Australians find the stodgy language of superannuation confusing. The terminology associated with superannuation is a barrier to self-education and may deter some Australians from taking early steps to plan for retirement. Millions of Australians care about their super account even though they … [Read more...]

Super for beginners, part 19: My employer has gone broke. What happens to my SG entitlements?

Q: My employer has suddenly ceased trading and despite appearing on weekly pay slips, I and fellow employees find no super contributions have been made, in my case for over 12 months. What, if any recourse, do we have?If your employer has not paid your super entitlements into your super fund, … [Read more...]

Non-cash contributions, CGT and contributions caps

Q: My husband and I, both near 50, plan to spend around $700,000 of our cash to buy shares soon. We don’t have a trust structure or company (both PAYG) and wondered how/if we could buy them in the name of our self-managed super fund? How do we get the cash from our names to the super fund? I’ve read … [Read more...]

Capital gains: Reducing tax via super contributions

Q: I have a self-managed super fund (SMSF) and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% … [Read more...]

Who can make tax-deductible super contributions?

Generally speaking, you can make two types of super contributions: non-concessional (after-tax) contributions and concessional (before-tax) contributions. Concessional contributions can also include tax-deductible super contributions, where an individual claims a deduction.For the 2015/2016 … [Read more...]

Super for beginners, part 3: Why aren’t my super contributions tax-free?

Q: I checked my statement and I put an extra $10 per week into my super and each time an amount is put in, it has been taxed. Is this right? I thought that my contributions were tax-free?I’m not certain if you’re asking:whether you pay any tax at all when you use your income to make super … [Read more...]