Help employees save on income tax and accelerate their progress towards their financial goals.
Also known as salary sacrificing, salary packaging voluntary additional super contributions – on top of what you as an employer contribute into their super fund – offers many advantages for employees.
Super is an important consideration no matter how far off retirement is, and there’s flexibility in the way employees can use salary packaging to help maximise savings.
The key to a solid super balance is time – the earlier employees start making voluntary contributions, the better. With a lower tax rate on salary packaged contributions, more of their money could be available to enjoy in retirement.
The First Home Super Saver Scheme (FHSSS), offers a way to boost savings by at least 30% by building a deposit for a first home inside a lower-taxed super fund environment.²
For employees nearing retirement, salary sacrificing a small amount into super each pay can help achieve the lifestyle they imagine when they stop working. They can continue salary packaging until the age of 75, contributing up to $30,000 per year to their super fund at a concessional tax rate of only 15%.
While all employers can offer salary packaging of superannuation, other benefits depend on your industry and its tax classification.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, employees should consider their own objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon their own particular circumstances. The availability of benefits is determined by the employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a Smart™ company.
Employees can apply to have a maximum of $15,000 of voluntary contributions from any one financial year included in their eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years. Eligibility requirements apply. See ATO website for details.
For most people, the First Home Super Saver Scheme could boost the savings they can put towards a deposit by at least 30% compared with saving through a standard deposit account (this is due to the concessional tax treatment and the higher rate of earnings within superannuation). View government factsheet for more information.
