For many people, relying on employer contributions won't be enough to fund their future dreams. Putting a little extra into super yourself using salary sacrifice can make great sense.
What is salary sacrifice?
Salary sacrifice involves having your employer pay some of your salary into your super account rather than receiving it as take-home pay.
Pay less tax with salary sacrifice
Reduce your taxable income
With some of your salary going into super, you’ll lower your taxable income and that could save you from paying higher rates of tax.
Lower tax rates on contributions
You also pay just 15% tax on your contribution into your super account, making salary sacrifice one of the most a tax-effective ways to save for your retirement.
Boost your super
Putting just a little extra into your super now can make a big difference to the lifestyle you'll have in retirement.
Step 1 - See it work for you
Use our salary sacrifice calculator to see the difference salary sacrifice could make.
Step 2 - Make it happen
Ask your employer to arrange to have extra contributions
made to my Sunsuper account via salary sacrifice. You might like to use this email. They can usually make the arrangement on your behalf.
Important Information about salary sacrifice:
It is advisable that you and your employer clearly state and agree on all the terms of any salary sacrifice arrangement. The contract is usually in writing, but may be a verbal one. If you enter into an undocumented salary sacrifice arrangement, you may have difficulty establishing the facts of your arrangement. If you have a contract of employment, you and your employer may need to review the terms and conditions of your contract to ensure the arrangement of your salary sacrifice is effective.
Concessional contribution cap: It's worth noting that there are some caps which limit the amount of before-tax contributions that can be made and any super contributed over the cap amount is subject to extra tax. The concessional contributions cap for the 2015/16 financial year is $30,000 pa, or $35,000 pa if you are aged 49 and over at 30 June 2015. Find out more about contribution caps.
If you are aged between 65 and 74, you need to complete the Work test declaration [PDF 55KB] and return it with your contribution.