The Board overseeing Catholic Super and the Board of TelstraSuper have signed a binding Heads of Agreement and agreed to proceed with a ‘merger of equals’ between the two funds.

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What is salary sacrificing?

Salary sacrificing involves paying some of your before-tax salary (that’s your income before any income tax has been calculated or deducted) straight into your super account.

Not only can it boost your super balance, but it can also potentially reduce your tax rate.

That’s because the money is directed into your super before you’ve paid income tax on that portion of your salary. Once in your super account it’s taxed at just 15%*, which is likely to be lower than the marginal tax rate that would have applied otherwise. 

* If your income plus your super contributions exceed $250,000 you’re taxed at an additional 15% on either your contributions or the amount that’s over $250,000, (whichever is lower).

Check with your employer

Salary sacrifice contributions need to be arranged with your employer, and not all employers offer this feature. You’ll need to check with your employer first to see if they can accommodate salary sacrifice arrangements.

Would salary sacrificing work for you?

Salary sacrifice contributions may not be right for everyone.

If the tax you pay on your salary sacrifice contributions is lower than your marginal individual income tax rate, you may be able to achieve significant tax savings.  

For those whose income is more than $250,000 a year, it’s worth noting that there is an additional tax on super contributions, generally charged at 15% of an individual’s taxable contributions. In addition, salary sacrificing may take you over the before-tax contribution cap.

For those on a low income, salary sacrificing may not result in effective tax savings for you.

We recommend you check with a qualified financial planner to determine the best contribution strategy for your circumstances and long-term financial goals.

Speak with a planner
Getting started with salary sacrificing

Simply contact the payroll office at your work and let them know you’d like to start salary sacrificing. 

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Not sure what’s right for you? 

Adding more to your super can be a powerful way to build your savings over time and the type of retirement lifestyle you’ve been dreaming of.

Our qualified Financial Planners can help you determine which type of contribution strategy might be right for you.

Contact our team

We're here to help

If you’d like more information about contributing to your super and which types of contributions might be suitable for your circumstances, our team can help.

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