Salary sacrifice

Salary sacrifice is where you agree with your employer to make extra payments to your super from your before-tax salary. By making salary sacrifice contributions, you may reduce your taxable income and end up paying less income tax as a result. 

What are the benefits?

The key is to take advantage of compound earnings (the returns you receive on your investment returns) by starting with extra contributions as early as possible. Your earnings are reinvested to provide you with more returns, which helps grow your investment over time. 

It’s important to note that salary sacrifice isn’t suitable for everyone. For example, if your income tax rate is 15% or lower, salary sacrifice may not be appropriate.

To find out how salary sacrifice could work for you, try our Contribution Optimiser Calculator.  

How do I get started?

To set up a salary sacrifice arrangement, you’ll need to arrange it directly with your Human Resources (HR) or payroll person. You can do this by giving them this form.

Is there a contribution limit?

Salary sacrifice is a before-tax (concessional) contribution and there are limits to the amount you can contribute.  

The concessional contribution limit is $25,000, regardless of your age. Your concessional contributions limit includes all before-tax contributions and personal tax deductible contributions made to super.

This limit applies per member, not per fund. This means that contributions made to any other super funds you might have, are included in the limit and additional tax will apply to contributions in excess of the limit. 

For more information, refer to the Super Guide or call us on 1300 362 415.

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<sub>This information on this website is provided by Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue BARTON ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty Ltd has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited (ABN 56 070 88 7 679).

The information contained in this website is correct at the time of publishing. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. If you are considering acquiring or continuing to hold a particular financial product, you should obtain the Product Disclosure Statement relating to the product and consider it before making any decision. The MTAA Super Product Disclosure Statement is available on this website, or by telephoning the Customer Service Centre on 1300 362 415.</sub>

_Disclaimer

<sub>This site is for general information purposes only and is not intended to be relied upon for the purpose of making an investment decision.

MTAA Super recommends that potential investors seek independent financial and taxation advice before making any investment decisions so as to determine whether an investment is appropriate, given the investor’s investment objectives, financial position and needs.

Applications for membership can only be made on the basis of the application form attached to the current PDS. Any person who gives another person access to the application form must at the same time and by the same means give the other person access to the relevant PDS and any supplementary document.</sub>