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.

Cashing in on the co-contribution rules (2014/2015 year)

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Note: The co-contribution rules for the 2014/2015 year (and for the 2013/2014 and 2012/2013 years) are very different from the co-contribution rules applicable for the 2011/2012 year. For your reference and convenience, we have retained the co-contribution rules for these previous years, at the end … [Read more...]

Super concessional contributions: 2014/2015 survival guide

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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. A contributions cap sets a limit on the amount of contributions you can make in any one year. If you exceed … [Read more...]

Double contributions tax for high-income earners

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Anyone earning more than $300,000 (including rental property losses and other items) now pays 30% tax on concessional contributions paid into a super fund, doubling the super tax bill for high-income earners. The regular contributions tax is a flat rate of 15%. Concessional contributions include … [Read more...]

Tax-deductible super contributions: Meeting the 10% income test

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Q: I work for myself but I also have a part-time job. I have been told that even though I receive SG from my part-time employer, I can also make tax-deductible super contributions. Is that true? And if it is true, how does it work? Individuals who are self-employed, or who are not employed, are … [Read more...]

Superannuation Guarantee: Many Aussies to miss out on SG increase

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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% (taking the SG rate to 9.5%) will not benefit those employees on fixed remuneration packages. As occurred … [Read more...]

Superannuation Guarantee: 10 facts about your SG entitlements

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If you work as an employee, and you satisfy certain minimum requirements, your employer must pay Superannuation Guarantee (SG) contributions on your behalf, to a super fund. Here is a list of 10 of the most important SG facts that you need to know: Your employer must make super contributions, … [Read more...]

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

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Q: I am earning a salary of $270,000 including super. I am aged 42 and I am planning my super contributions for the 2014/2015 year. 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 … [Read more...]

Concessional contributions caps: 10 facts you should know

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We receive many questions about the concessional contributions caps. Throughout 2014, SuperGuide, as always, will regularly update readers on any proposed changes to the contributions caps (and other super changes), and the implications of such changes on super strategies. The list of 10 Q&As … [Read more...]

Upper limit on SG contributions (for 2014/2015 and previous years)

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Note: This article explains the maximum superannuation contribution base for the 2014/2015 year, 2013/2014 year and previous years. The maximum superannuation contribution base is used to determine the maximum Superannuation Guarantee (SG) contribution that an employer is required to make under … [Read more...]

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

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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...]