Salary sacrifice

Salary sacrifice

Turbo-boost your super through salary sacrifice.

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 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 salary sacrificing before tax, you could:

Grow your super.pngLower your income tax

Generally, salary sacrifice contributions are taxed at 15% when contributions are paid into your super account, which 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.pngSave 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.

Moderate.jpgTake advantage of no annual cap1

With Triple S, members can take advantage of the rare benefit we offer which allows you to contribute much more to your super each year. With most super funds, an annual contribution cap of $27,500 applies. However Triple S members have a lifetime cap, but no annual cap1. This is a great way to turbo-boost your super as you’re nearing retirement.

Save now, spend later

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

Charlie is saving enough for an ocean cruise and more in retirement.2

He is 55 and works in health care. He earns $120,000 per year and is planning to retire at age 67.

He has just started to help it grow with salary sacrifice contributions of $600 per fortnight. That means he is on track to have an extra $173,487 in his super to spend on an ocean cruise and more when he retires at age 67.

  No salary sacrifice With salary sacrifice contribution $600 per fortnight
Take home pay fortnight $3,390 $2,997

As a result Charlie:
  • Pays $5,382 less in Income Tax per year
  • Reduces his take home pay by only $393 per fortnight
  • Has $173,487 more in his Super at age 67
Meet Charlie
Meet Charlie


2 By contributing $600 per fortnight you could have $173,487 more at retirement, which could pay for an ocean cruise and more when you retire.

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


The "extra in your super at age 67" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Superannuation balance of $250,000
  • Default employer Super Guarantee contributions of 10.5% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 5% per annum
  • Price inflation rate of 2% per annum and a salary inflation rate of 3.2% per annum
  • Insurance premiums of $300 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.

Sarah is saving enough to do more travelling in retirement.3

She is 40 and is a teacher. She earns $82,000 per year and is planning to retire at age 67.

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 $29,060 in her super to do more travelling when she retires at age 67.

  No salary sacrifice With salary sacrifice contribution $40 per fortnight
Take home pay fortnight $2,432 $2,406

As a result Sarah:
  • Pays $203 less in Income Tax per year
  • Reduces her take home pay by only $26 per fortnight
  • Has $29,060 more in her Super at age 67
Meet Sarah
Meet Sarah

3 By contributing $40 per fortnight you could have $29,060 more at retirement to do more travelling when you retire.

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


The "extra in your super at age 67" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Superannuation balance of $100,000
  • Default employer Super Guarantee contributions of 10.5% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 5% per annum
  • Price inflation rate of 2% per annum and a salary inflation rate of 3.2% per annum
  • Insurance premiums of $300 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.

 

Sam is saving enough for a round-the-world trip in retirement.4

She is 26 and works in health care. She earns $66,000 per year and is planning to retire at age 67.

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 $36,816 in her super to spend on a round-the-world trip when she retires at age 67.

  No Salary Sacrifice With salary sacrifice contribution $30 per fortnight
Take home pay fortnight $2,030 $2,011

As a result Sam:
    • Pays $6 less in Income Tax per fortnight
    • Reduces her take home pay by only $20 per fortnight
    • Has $36,816 more in her Super at age 67
Meet Sam
Meet Sam

4 By contributing $30 per fortnight you could have $36,816 more at retirement, which could pay for a round-the-world when you retire.

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

 

The "extra in your super at age 67" has been calculated based on the following assumptions and rules of the Triple S Scheme as follows:

  • Superannuation balance of $20,000
  • Default employer Super Guarantee contributions of 10.5% up to 12% by 1 July 2025
  • Salary is excluding Super Guarantee
  • Investment rate of return of 5% per annum
  • Price inflation rate of 2% per annum and a salary inflation rate of 3.2% per annum
  • Insurance premiums of $300 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 caps 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.

What’s the benefit of no annual salary sacrifice contribution cap?1 

There's different caps 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), you are subject to a lifetime cap ($1.650 million - for the 2022/23 financial year) in 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.

What’s the benefit of untaxed contributions with Triple S?

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. Unlike other super funds, this allows your super to grow over time with your untaxed dollars.

This is subject to applicable tax rates, which will depend on whether you roll over, or if you cash out, and 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.


How to set up your salary sacrifice

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

Form download.png

Step 1: 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.

Download the form.

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

Email us.png

Step 2: 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.

Salary sacrifice.png


Step 3: 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?


1 A lifetime untaxed plan cap currently $1.65m applies. Refer to the Triple S Product Disclosure Statement for further information. 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.

The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation and needs, read the Product Disclosure Statement (PDS) and seek financial advice from a licensed financial adviser in relation to your financial position and requirements. 

Talk to us

Click below to speak to our friendly Member Services team.