Salary Sacrifice

Why pay 32.5% tax or more for each dollar you earn if you only need pay 15%?

Example

Every dollar you earn between $37,001 and $80,000 is taxed at 32.5%. However, every dollar salary sacrificed into your superannuation account is taxed at just 15%. That means every $100 in gross income becomes $67.50 in your pocket or $85 in your super.

Compare the tax rates 2015/16

Taxable income Income tax rate Salary sacrifice tax rate
$37,001 - $80,000 32.5% 15%
$80,001 - $180,000 37% 15%
$180,001 - $300,000 47% 15%
$300,000 + 47% 30%

To salary sacrifice, speak to your employer. 

Get a more detailed understanding of salary sacrifice and contribution limits.