Do I have to pay tax on additional super contributions?

If you salary package additional contributions, you pay tax at a rate of only 15% up to the limit of your concessional contributions. This makes it more cost-effective than paying contributions from your after-tax income.

What are concessional contributions?

Concessional contributions, also called 'pre-tax' contributions, come from income that has not yet been taxed. Once the concessional contributions are in your super fund, they’re taxed at a rate of 15%. The Australian Taxation Office sets the limit for these concessional contributions. This includes the amount contributed by your employer under the Superannuation Guarantee Scheme as well as any amount you salary package.

Is there a limit on concessional (pre-tax) superannuation contributions?

Yes. In the current financial year, the annual superannuation concessional contribution limit is $30,000, which includes both your and your employer’s contributions.

Is salary sacrificing super the same as salary packaging super?

Yes, the term ‘salary sacrificing’ means the same as ‘salary packaging’.

Salary packaging superannuation

Save on income tax now while building future wealth for the future, by salary packaging additional super contributions.

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Get your super working harder for you

Also known as salary sacrificing, there are many reasons to consider salary packaging voluntary contributions in addition to what your employer may already contribute into your super fund.

Pay less tax on your contributions

Help achieve your financial goals faster

Maximise your tax savings

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Benefits of salary sacrificing super

Super is an important consideration no matter how far off retirement is.

Saving for your first home?

It just got easier with the First Home Super Saver Scheme (FHSSS). Boost your savings by at least 30% by building a deposit for your first home inside a lower-taxed super fund environment.¹

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The sooner you start, the more you could save

The key to a solid super balance is time – the earlier you start building it, the more you could save. And because you pay a lower tax rate on salary packaged contributions, more money could go towards your actual retirement savings.

Continue to build wealth as you age

Do you have enough in super to live the retirement life you imagine? You can continue salary packaging into your fund until you’re 75, to maximise your savings. You can contribute up to $30,000 per year at a concessional tax rate of only 15%.

Can you salary sacrifice super?

It all comes down to your employer’s policy and your employment setup. Try the search bar below to find out.

Check if you’re eligible

See if your employer lets you salary package this benefit.

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Important information

This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a Smart™ company.

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). Information obtained from https://archive.budget.gov.au/2017-18/glossies/factsheets/FS_14_Housing_Affordability.pdf. You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your 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.

Prior to commencing additional voluntary contributions for the purposes of accessing the FHSS Scheme, we recommend you contact your superannuation fund to ensure that it allows the release of these contributions and does not have any other relevant limitations or rules in place.