Salary sacrifice super contributions

Start putting pre-tax salary into your super now, to avoid sacrifices down the road.

What is salary sacrificing super and how does it work?

When you salary sacrifice into super, you make an arrangement with your employer to pay some of your salary or wages, before tax is deducted, into your super account instead of your bank account. This is a personal contribution you make on top of your employer’s compulsory Superannuation Guarantee (SG) payment, which is 9.5% of your salary.

  1. You pay less tax

    Salary in your super account gets taxed at 15% (if you earn less than $250,000) or 30% (if you earn more than $250,000). However, any salary you take home gets taxed at your usual income rate, which can be as high as 47%.

  2. You reduce your taxable income

    The more salary you put into your super, the smaller your taxable income may be – and that could mean even more savings at tax time.

Is salary sacrificing right for me?

Setting up salary sacrificing to save more for your retirement might seem like a no-brainer. In addition to considering your debt levels before adding to your super, weigh up the following:

  1. It’s not as effective for low-income earners

    If you earn less than $37,000, you’ll only save a small amount on tax – it’s probably not worth having less in your pocket on payday for a small tax gain.

  2. It may impact your current benefits

    When you salary sacrifice, you change your salary. This means that benefits like holiday loading and overtime might be affected if they’re tied to your salary. To protect your benefits while salary sacrificing, you’ll need to reach an agreement with your employer.

  3. You can’t claim deductions/tax offsets on sacrificed amounts

    You also can't claim sacrificed amounts as fringe benefits tax.

  4. There's a $25,000 limit on concessional contributions (including employer contributions).

    Any amounts over the $25,000 p.a. limit will be taxed at your marginal tax rate, plus an excess concessional contributions charge. From 1 July 2019 you may be able to carry forward any unused portion of the concessional contributions cap from previous financial years. Eligibility criteria applies, see the Super contributions limit fact sheet for full details. 

How to get started

If you'd like to start adding more to your super through salary sacrificing, simply download the below form and fill it out with your employer.

Add to your super through your employer - pdf, 109KB

Add to your super and retire with more - pdf, 325KB

Other ways to grow your super

Add to your partner’s super

If you’re an AustralianSuper member, your partner can split their pre-tax super contributions with you and pay that into your super account.

Find out more

Make an after-tax contribution

Adding a little extra to your super from your take-home pay is a great way to grow your savings for the retirement lifestyle you want.

Contribute now

Make your salary go further

With low fees and strong past performance, your hard-earned money can grow into more with us.

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