Option 6 - Salary Sacrifice
Your employer can contribute more to your super than is required by the Government using a 'salary sacrifice' arrangement.
Salary sacrifice means regular superannuation contributions are deducted from your salary before tax is paid at your marginal rate. This can be compared to a maximum of 15% tax paid with the superannuation fund. Therefore, if your marginal tax rate is greater than 15%, the difference is the benefit, which will be retained, in the super fund earning interest. This is a prime example of salary packaging.
These voluntary super contributions are also tax deductible for your employer. There are, however, limits to the amount, which can be contributed each year.
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