Salary sacrifice contributions are made from money that is paid into your super from your salary before tax is deducted. You need to set these kinds of contributions up with your employer.
By taking these contributions from your salary before you are charged PAYG tax, the amount of salary that is left to be taxed is reduced, meaning your taxable income goes down.
Salary sacrifice contributions are taxed at the concessional rate of 15% when they are paid into ElectricSuper, which is probably much lower than your usual rate of tax.
The amount of super that you can pay by salary sacrifice is capped. The current year’s cap is available on the ATO website and is known as a ‘concessional contributions cap’. If you breach the cap, you will pay additional tax. See more about the cap and exceptions to the rule in The Concessional Contribution Cap box below.Start now