Salary sacrifice

Salary sacrifice

Boost your super through a salary sacrifice agreement with your employer or through a salary sacrifice provider

One of the best ways to create the life you want to live in retirement is to continually give your super an extra boost over time.

An effective way to do this is may be to salary sacrifice to your super. A salary sacrifice agreement can be made with your employer or through a salary sacrifice provider to make superannuation contributions from your before-tax salary.

By contributing before tax, you could:

Grow your super.png

Lower your income tax

Generally, salary sacrifice contributions are taxed 15% when contributions are paid into super account, this may be lower than your marginal tax rate. It also reduces your taxable income, as salary sacrifice contributions are deducted from your before-tax salary.


 

Consolidate.png

Save more in super

With a salary sacrifice agreement in place, you will be saving more for retirement, which will be compounding over time. This could allow you to arrive at a financially sound place, sooner than later. When you’re ready to retire and live your best life, you’ll be better prepared financially.

   

Save now, spend later

The following case studies show the long-term benefits of boosting your super.

Meet Sam
She is saving enough for a round-the-world trip in retirement.1

Sam is 26 and works in health care. She earns $66,000 per year and is planning to retire at age 65.

She has just started to help it grow with salary sacrifice contributions of $30 per fortnight. That means she is on track to have an extra $60,300 in her super to spend on a round-the-world trip when she retires at age 65.

    No Salary Sacrifice   With salary sacrifice contribution $30 per fortnight  
Take home pay fortnight   $2,071   $2,055  

As a result Sam:
    • Pays $9 less in Income Tax
    • Reduces her take home pay by only $16
    • Has $60,300 more in her Super at age 65
Meet Sam
Meet Sam

For more information on how these contributions are taxed, refer to the Triple S reference guide.

1 By contributing $30 per fortnight you could have $60,300 more at retirement, which could pay for a round-the-world trip when you retire.


The "extra in your super at age 65" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Default employer Super Guarantee contributions of 10% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 6.1% per annum
  • Price inflation rate of 2.5% per annum and a salary inflation rate of 3.2% per annum
  • Death and Total and Permanent Disablement (TPD) insurance premiums of $117 per annum and Income protection is $105.60 per annum.
  • Administration fees have been calculated at $70.20 per year plus 0.05% of the account balance (capped at $325 per year).

This calculation estimates an amount payable at a future time and has been adjusted to include price inflation to assume changes in the cost of living.

Want to learn more about growing your super? Book into a webinar today.

Meet Sarah
She is saving enough to do more travelling in retirement.1

Sarah is 40 and is a teacher. She earns $82,000 per year and is planning to retire at age 65.

She has just started to help it grow with salary sacrifice contributions of $40 per fortnight. That means she is on track to have an extra $34,900 in her super to do more travelling when she retires at age 65.

    No salary sacrifice   With salary sacrifice contribution $40 per fortnight  
Take home pay fortnight   $2,474   $2,453  

As a result Sarah:
  • Pays $11 less in Income Tax
  • Reduces her take home pay by only $21
  • Has $34,900 more in her Super at age 65
Meet Sarah
Meet Sarah

For more information on how these contributions are taxed, refer to the Triple S reference guide.

1 By contributing $40 per fortnight you could have $34,900 more at retirement, which could pay for more travelling when you retire.


The "extra in your super at age 65" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Default employer Super Guarantee contributions of 10% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 6.1% per annum
  • Price inflation rate of 2.5% per annum and a salary inflation rate of 3.2% per annum
  • Death and Total and Permanent Disablement (TPD) insurance premiums of $117 per annum and Income protection is $213 per annum.
  • Administration fees have been calculated at $70.20 per year plus 0.05% of the account balance (capped at $325 per year).

This calculation estimates an amount payable at a future time and has been adjusted to include price inflation to assume changes in the cost of living.

Want to learn more about growing your super? Book into a webinar today.

Meet Charlie
He is saving enough for an ocean cruise and more in retirement.1

Charlie is 55 and works in health care. He earns $120,000 per year and is planning to retire at age 65.

He has just started to help it grow with salary sacrifice contributions of $2,308 per fortnight. That means he is on track to have an extra $737,000 in his super to spend on an ocean cruise and more when he retires at age 65.

    No salary sacrifice   With salary sacrifice contribution $2,308 per fortnight  
Take home pay fortnight   $3,397   $1,924  

As a result Charlie:
  • Pays $835 less in Income Tax
  • Reduces his take home pay by only $1,473
  • Has $737,000 more in his Super at age 65
Meet Charlie
Meet Charlie

For more information on how these contributions are taxed, refer to the Triple S reference guide.

1 By contributing $2,308 per fortnight you could have $737,000 more at retirement, which could pay for an ocean cruise and more when you retire.


The "extra in your super at age 65" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Default employer Super Guarantee contributions of 10% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 6.1% per annum
  • Price inflation rate of 2.5% per annum and a salary inflation rate of 3.2% per annum
  • Death and Total and Permanent Disablement (TPD) insurance premiums of $117 per annum and Income protection is $936 per annum.
  • Administration fees have been calculated at $70.20 per year plus 0.05% of the account balance (capped at $325 per year).

This calculation estimates an amount payable at a future time and has been adjusted to include price inflation to assume changes in the cost of living.

Want to learn more about growing your super? Book into a webinar today.


What you need to consider

There are limits to on the amount you can contribute into your super which vary by scheme. Read on to learn more about concessional contributions cap limits and tax implications.

Salary sacrificing with Triple S

There's different limits that apply to how much you can salary sacrifice into Triple S.

Rather than concessional contributions being subject to an annual cap (currently $27,500), yours are subject to a lifetime cap ($1.615 million - for the 2021 - 2022 financial year) to Triple S. If you also receive concessional contributions in a taxed fund, any concessional contributions made to Triple S will be counted towards your annual concessional contributions cap.

Refer to the Triple S Product Disclosure Statement and Reference Guide for further information.

With this benefit, you could significantly increase the amount you've saved in superannuation through compounding returns over a long period of time.
iStock-513941030_1000x667.png
  • If you salary sacrifice into the Triple S scheme, rather than paying 15% tax up front on your contributions, tax is deducted when you withdraw from the fund in accordance with the Australian Taxation Office rules for untaxed funds.

    This is subject to applicable tax rates, which will depend on whether you roll over, or if you cash out it will also depend on your commonwealth preservation age.
    Further information about is available in the Triple S Reference Guide.

    If the sum of your income and relevant concessionally taxed contributions is over $250,000 per year, you'll be taxed at 15% of your relevant concessional contributions above the $250,000 threshold. You'll receive notification from the Australian Taxation Office (ATO) advising you of the amount payable and your payment options. More information is available in the Super SA Division 293 Tax fact sheet and on the ATO website.
iStock-1159984288_edited_1000x543.png

Salary sacrificing into Super SA Select

If you’re in the Super SA Select scheme, any concessional contributions (including salary sacrifice and employer contributions) are taxed at a rate of 15% when they’re made by your employer. More information is available in the Super SA Select Reference Guide and on the ATO website. If you have a Super SA Select account, you have a concessional contribution cap that applies (currently $27,500 per financial year), this includes any employer and salary sacrifice contributions.

 

Refer to the Super SA Select Product Disclosure Statement and Reference Guide for further information.

How to set up your salary sacrifice

Setting up your salary sacrifice through Super SA is a quick and easy three step process. 

Fill in the Salary Sacrifice form

Want to salary sacrifice directly to Super SA? Decide on a set dollar amount or percentage to salary sacrifice. Filling in the form is easy.

Click below to download your schemes form.

Alternatively you may choose to make salary sacrifice contributions through a 3rd party like Maxxia.

Give the completed form to your employer or HR delegate

If you’re not sure who to give the form, just ask your immediate manager. They should know where the form needs to go. If you are a Police Officer and a member of the Triple S Scheme or Super SA Select then please send your form directly to Super SA to action and we will then forward to your employer or HR delegate for processing.

Your employer or HR delegate will complete the employer declaration for you

After you’ve given the form to your employer or HR delegate, the employer declaration, section 5, will be filled in by your employer or HR delegate. They’ll also hand the completed form to your agency's payroll to process. Shared Services or Payroll will action the completed form and they’ll adjust your salary as per your instructions in the form and the employer will deduct a $44 fee. 

Want to know more about salary sacrificing to super?

It's easy to find out.

The information shown on this website is general information only. We haven’t considered your needs or objectives when providing the information. You should assess your own financial situation and needs and read the relevant Product Disclosure Statement before deciding about products on this website.

Talk to us

Click below to speak to our friendly Member Services team.