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Pay less tax and save for retirement

If you put pre-tax income into super, you may be able to build more super and pay less tax. This is because the money that goes into super is usually taxed at 15% instead of at your marginal tax rate (32.5% if you earn over $37,000 or 37% if you earn over $87,000).

One way to put your pre-tax income into super is to ask your employer to put some of your pay into your super instead of putting it all into your bank account. This is known as 'salary sacrifice'.

Getting started

The first step is to check with your employer to see if this is something they can do. If the answer's yes, then let them know how much you'd like to sacrifice. Your employer and TWUSUPER will do the rest.

Many employers have their own processes for applying salary sacrifice, but if they need a form from your super fund you can download it here.

Salary Sacrifice form

If you can't proceed with a salary sacrifice arrangement, you could qualify for a tax deduction if you make contributions to your super from your after-tax pay.

The difference you can make

You probably have a rough idea of how much of your salary you can comfortably afford to contribute. There are limits to how much you can salary sacrifice, but you probably won't want to sacrifice that much anyway.

ASIC's Moneysmart website has a calculator to help you see what your pay and super might look like with salary sacrifice.

If you have any questions, call us any time between 8am and 8pm on 1800 222 071 weekdays.

Need to know

  • The most you can put into super before tax each year is $25,000. This includes the amount your employer pays as a super guarantee (usually 9.5%). So if your employer pays a SG of $10,000 a year, the most you can salary sacrifice is $15,000.
  • Conditions apply for income earners¬†of over $250,000.
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