Salary Sacrifice into Super
Give Your Super A Significant Boost
Salary sacrifice can substantially boost you super and retirement savings.
Rather than paying income tax at your marginal tax rates (up to 46.5%), your super contribution will be taxed at 15%. Representing a tax-free saving of up to 31.5%.
John, aged 53 is an employee earning $90,000 per annum. He is unsure whether to salary sacrifice $20,000 into super or make after tax contributions.
The table below sets out the result of each option:
As you can see, John's salary sacrifice contribution of $20,000 provides an immediate tax saving of $4,800.
Assuming an 8% annual return on investment and an additional $4,800 being invested into John's super up until the age of 60, John can boost his retirement savings by an additional $69,535.
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