Ask an Adviser: tax advantages of salary sacrifice

August 7, 2024

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We asked TelstraSuper Financial Planning Adviser Rebecca Cheevers: I earn $150,000 a year. What are the tax advantages of salary sacrificing into super?

Rebecca Cheevers from TelstraSuper Financial Planning

If you can afford to forgo some of your take home pay, salary sacrificing is one of the easiest ways to boost your super and pay less tax in the process.  Based on your salary, the tax rate on every dollar you earn above $135,001 is 37%*, whereas any amount of super contributions made from your pre-tax salary are only taxed at 15%.  

So, if you were able to salary sacrifice say, $10,000, into your super this financial year you will pay only $1,500 in tax and boost your super by $8,500. Alternatively, if you take that $10,000 as salary, you will pay $3,700 in tax, leaving you with $6,300 in take- home pay.  

There is a limit on the amount of pre-tax contributions you can make to your super. 

SEE THE LIMITS

Want to learn more? Try our online chat or call on 1300 033 166 if you need further assistance. 

* Does not include Medicare levy of 2%. 
Past performance is not a reliable indicator of future performance. Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.