Salary sacrifice means contributing from your before-tax income.
Salary sacrifice contributions will be taxed when you withdraw them from Triple S after age 55, subject to applicable tax rates which depend on your Commonwealth Government preservation age.
There are two ways you can make salary sacrifice contributions to your super:
- arrange to have the contributions deducted from your pay through your payroll office. A fee of $44 is charged by your employer for commencing or changing a salary sacrifice arrangement through your payroll office
- use a salary sacrifice provider who will handle everything for you, subject to their fees and charges. You can find out more from the Office of the Commissioner for Public Sector Employment.
Contributions are credited to your Employer Account.
Salary Sacrifice contributions will be taken into account when you’re assessed for a range of Commonwealth benefits, including the co-contribution, age pension, Family Tax Benefit and Child Support.
Growing your super through salary sacrifice does not entitle you to:
Salary sacrifice and tax
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.
You can use the Projection Calculator to estimate how making salary sacrifice contributions could grow your super.