Super & study · AU
Salary sacrifice
Redirecting pre-tax salary into super or a benefit.
Salary sacrifice is an agreement to give up part of your before-tax salary in return for a benefit — most often extra super. Because the money goes in before income tax, contributions are generally taxed at 15% inside super rather than your marginal rate, which can lower your overall tax while building retirement savings.
Sacrificed super counts towards your annual concessional (before-tax) contributions cap, so it’s worth keeping an eye on the limit.
Grounded in ATO guidance. General information, not tax advice.
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