Salary sacrifice super contributions

Salary sacrificing

Salary sacrifice is a way of using some of your before-tax earnings to your advantage.

You might be familiar with using a salary sacrifice arrangement to lease a car or some equipment for your job. But you can also use this method to make extra contributions to your super.

There are two main benefits to salary sacrificing to super. First, it's an easy way to give you a super boost and help it grow faster. And second, it can help you save on tax.

Salary sacrificing to your super is something you arrange with your employer. Because it comes out of your salary before you've paid income tax, it's generally taxed as super at 15% and not at your marginal tax rate.

Depending on your circumstances, salary sacrifice can reduce the overall amount of tax you pay.

While topping up your super’s a great way to save, and even a little extra today can make a big difference tomorrow, it's important to be aware of the limits (or ‘caps’) the government sets on super contributions. So keep track of your super contributions by logging into your super account regularly. If you're a UniSuper member, checking your account is easy. You can use our award-winning app or log into your account via our website.

Before you start salary sacrificing, it's important to consider your situation. For example, it could be more effective for you to top up your super with your after-tax income. So it's best to check.

If you're keen to understand what your options are, why not speak with one of our super consultants? Appointments are available to anyone, online and in-person, at no additional cost, even if you're not a UniSuper member.

Whatever you decide, with UniSuper, it's easy to imagine a future worth retiring for. Visit unisuper.com.au/salarysacrifice to learn more.

The information contained in this video is of a general nature and doesn't consider your personal circumstances. Before making decisions, consider the relevant PDS and TMD on our website and your circumstances, and whether to seek financial advice. Investment returns can be positive or negative. Past performance isn’t indicative of future performance. UniSuper Advice is operated by UniSuper Management Pty Ltd ABN 91 006 961 799 (USM), which is licensed to provide financial product advice. USM is also the administrator of the fund UniSuper ABN 91 385 943 850 (UniSuper). UniSuper Limited ABN 54 006 027 121 is the trustee of UniSuper.