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.

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

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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 tax-free super contribution paid by … [Read more...]

SMSF trustees: Is your fund ready for SuperStream?

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If your SMSF receives super contributions from an employer, or employers, on behalf of SMSF members, then you need to ensure that your self-managed super fund is SuperStream-ready. Effective from 1 July 2015, employers with 19 or fewer employees must use the SuperStream standard, although as the … [Read more...]

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

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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 2014/2015 year)

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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...]

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...]

Salary sacrificing and super: 10 facts you should know

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Salary sacrificing, by making before-tax super contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance (and pay 15% contributions tax, and for those earning more than $300,000, 30% tax on super contributions) while … [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 and into 2015, 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 … [Read more...]

Who can make tax-deductible super contributions?

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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 2014/2015 … [Read more...]

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 earlier 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 … [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. This article … [Read more...]