Salary sacrifice

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.

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If you’re salary sacrificing, you’re agreeing to a before-tax (concessional) contribution and this will not count toward the eligibility for a Commonwealth Government Co-Contribution.

You are only eligible for a Commonwealth Government Co-Contribution through voluntary after-tax contributions and if you meet the eligibility criteria. More Commonwealth Government Co-Contribution information is available in your schemes Product Disclosure Statement (which can be found here). 

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.

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.