Ask an Adviser: tax advantages of salary sacrifice
August 7, 2024
We asked TelstraSuper Financial Planning Adviser Rebecca Cheevers: I earn $150,000 a year. What are the tax advantages of salary sacrificing into super?
“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.
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%.