Start salary sacrifice contributions
- Speak to a financial adviser to discuss your personal financial situation and whether a salary sacrifice arrangement will work for you.
- Talk to your employer about how much you'd like to deduct from your pay, and they'll set up your automatic contributions.
Benefits of salary sacrifice
You can pay less tax.
- These contributions are taxed at 15%, which is generally lower than the tax you’d pay if you received it as take-home pay.
- It can reduce your taxable income so you may pay less income tax.
Things to consider
- Salary sacrifice contributions count towards your yearly $25,000 concessional contributions cap. See more about contribution caps.
- If you earn less than $54,837 a year, after-tax contributions might be a better option as you could be eligible for a government co-contribution.
- DBD members can make salary sacrifice contributions as part of their default member contributions.