Salary Package your Super now and Enjoy the Benefits
Your employer pays a portion of your salary into a super fund, but you can also make additional contributions that add to your retirement nest egg. If you choose to salary package additional super contributions, you could benefit from a reduced taxable income*.
How does it work?
When you salary package additional contributions, your super is taxed at a ‘concessional’ (before-tax) rate of 15 percent.
Because you’re putting your before-tax income into your super account, the salary you receive from your employer could be reduced, lowering your annual taxable income.
Is there a limit?
Yes. There are limits to contributions to your super under a salary packaging arrangement before you have to pay tax. There is a yearly cap (limit) on the amount of additional income that can be salary packaged to super of $25,000.
Where to from here?
We can increase your regular deductions, or you can make once off payments if you have available funds in your accounts.
*Additional superannuation contributions from pre-tax salary are subject to 15% contributions tax. The taxation of additional superannuation contributions via salary packaging may differ from the taxation of additional superannuation contributions from post-tax salary. Additional superannuation contributions will be reported on an employee’s annual payment summary and will be used to assess an employee’s eligibility for a number of government benefits, or liability for certain payments. Caps for concessional superannuation contributions apply – please refer to www.ato.gov.au for up to date information.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.