One Private Wealth

Salary Sacrificing

One of the key strategies in boosting your Superannuation assets is salary sacrificing. Salary Sacrificing allows you to ‘sacrifice’ part of your salary to contribute into your Superannuation which is a great way to reduce your overall tax position and build your Superannuation assets.

How Much Can You Salary Sacrifice?

There are limitations on how much you can Salary Sacrifice and this is dependent on your age. If you are under the age of 49, the concessional contribution limit is $30,000 per annum which also includes the amount your employer contributes (i.e. the SGC). For those aged over 49, the concessional contribution limit is $35,000.

Benefits of Salary Sacrificing

Salary Sacrificing has the following benefits:

  • The amount you Salary Sacrifice has a concessional tax of 15% versus your marginal tax rate.
  • Boosts your super assets and retirement nest egg.
  • Placing funds into a tax effective environment; as earnings on super is 15% and when you convert to a pension, earnings are taxed at 0%.