The Federal Budget 2021-22 included good news for super members. Find out what it could mean for you.
What is salary sacrifice?
Salary sacrifice is the term used for making personal contributions into your superannuation account from your before-tax income. It’s a tax-effective way to grow your super and boost your super account balance.
It’s worth noting, however, that any money you salary sacrifice into your super account is generally taxed at a rate of 15%* and because it’s going into your super, you more than likely won’t see this money until you retire. As this is a long-term investment, it’s best to talk to a financial advisor before you make any decisions.
* If your combined income and concessional contributions are more than $250,000 you may have to pay extra tax on your contributions.