S.O.S Accounting - Services

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%.

For example:

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.

S.O.S Accountants can help. Call us on 02 9588 9588 or Contact Us via our online form to make an enquiry.

The information in the above example is of a general nature and is not intended to meet your individual needs and objectives. Please do not act on any information within this example before seeking advice from a qualified professional. While we believe that this material is correct, no warranty of accuracy, reliability or completeness is given and, except for liability under statute which cannot be excluded, no liability for errors or omissions is accepted.