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Salary sacrificing is where you make extra regular voluntary contributions, or, contribute a one-off amount from your before tax income into your superannuation.

Salary sacrificing can help to grow your super at an accelerated rate. When you salary sacrifice you generally only pay 15 per cent tax on these contributions instead of your marginal tax rate (plus Medicare levy and other applicable levies). Refer to Division 293 tax section on the ATO website.

There is a limit of $27,500 that you can contribute to super from your before-tax income in any one year. This limit includes your employer contributions.

For more information on how you can salary sacrifice, speak to your employer who can arrange this for you, or visit the ATO website.

Important information

This information was prepared by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life). A copy of the Product Disclosure Statement can be obtained by contacting Resolution Life. This general advice has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of this information in light of your circumstances. This advice is based on our understanding of current law as at May 2022, and is based on its continuance unless stated otherwise. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. Resolution Life do not actively monitor breach of superannuation contribution caps. You should keep track of the contributions made to your account in respect of the caps applicable to you. You should obtain professional advice before acting on the information contained in this communication. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Resolution Life is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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