Dropping your take-home pay a little can boost your super balance a lot. And save you tax while you’re at it.
How does it work?
You ask your employer to put a portion of your pre-tax salary straight into your super fund.
Because your super contributions are taxed at only 15% by the super fund – as opposed to your marginal tax rate of up to 46.5% (including the Medicare Levy) – more of your money can be invested than if you took this money as cash.
On top of this, the portion of your salary put into super does not count as assessable income, potentially reducing your tax bill even further.
Even small amounts each pay can make a big difference over the long term, so talk to your financial planner to find a salary sacrifice strategy that suits you.
