Salary sacrifice

An easy strategy that allows you to boost your super from your pre-tax salary and potentially pay less tax. 

Boost your super and save on tax

One of the easiest ways to boost your super is to set up ongoing contributions from your pre-tax pay. It's called salary sacrifice and it generally lets you pay less tax and boost your super directly from your pay. It's easy to set up and by contributing a little each pay period, you'll hardly notice a difference.

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It's easy to get started

How to contribute depends on where you work.  

  • Telstra employees:  nominate an amount to contribute through Workday.
  • Non-Telstra employees:  contact your payroll team  and let them know you’d like to start making contributions from your pre-tax salary.  

There are limits on how much you can contribute into your super from your pre-tax pay.

Small sacrifices can make a big difference

By making pre-tax contributions into your super account you could save on tax.  Contributions to super are generally taxed at 15%* which can be lower than your marginal tax rate. The more you boost your super the more likely you will maintain your lifestyle after you finish work.  

Adding a little extra to your super now could make a difference to your lifestyle in retirement.  So the sooner you start the harder your super savings will work for you in the future. 

Remember that any salary sacrifice contributions you make are counted towards the pre and post -tax contributions cap and included when calculating your total income for super co-contribution purposes and other government benefits.

Try our pre-tax vs post-tax contributions calculator to see the difference extra contributions could make to your final balance. 

Pre-tax vs post-tax contributions calculator


* If your taxable income is higher than $250,000 a year, you’ll pay 30% tax on your pre-tax contributions.  If your income is less than $250,000 a year but when you add in pre- tax contributions it’s above $250,000, the 30% tax rate will apply to that part of your pre -tax contributions that are over $250,000. For example, if your income is $230,000 and your pre -tax contributions are $25,000, the 30% tax rate only applies on the $5,000.


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 investment decision, you should obtain and read the relevant product disclosure statement and target market determination. You may wish to consult a financial adviser before you make any decisions relating to your financial affairs. Past performance is no indicator of future returns.

Need help boosting your super?

At TelstraSuper we’re here to help you build a secure financial future. TelstraSuper Financial Planning has a team of phone based Advisers who can provide you with simple advice to help you get your super on track. If you’d like to discuss growing your super or if you have any other financial advice queries contact us on 1300 033 166 or fill in our online contact form. There's no additional cost for our phone based advice as this is included in your TelstraSuper membership.

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