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Salary sacrifice

Contributions from your employer alone may not be enough to fund your dream retirement. Salary sacrifice is a simple way you can add to your super and help it grow faster - it also has some great tax benefits!

So what exactly is salary sacrifice?

Salary sacrifice contributions are before tax payments you set up through an agreement with your employer. Money is paid into your super before you pay tax, which may reduce your taxable income.  

I'm interested... what next?

Step 1 - Use our calculator

Before you commit to salary sacrifice, you can see how it could work for you, by using our contributions calculator.

Step 2 - Make it happen

Ask your employer to arrange to have extra contributions made to your Australian Retirement Trust account via salary sacrifice. They can usually make the arrangement on your behalf. You can use this email template to let them know. If you aren’t able to salary sacrifice, you can still make before-tax super contributions by making voluntary contribution from your after-tax pay, and then claiming a tax deduction.

Contribution limits (or caps)

It's worth noting that there is a limits to the amount of before-tax payments (or contributions) that can be made and any super contributed over the limit  is subject to extra tax. For 2022-23, the before-tax limit is $27,500. Unused portions of the limit can be “rolled over” to future years, subject to certain conditions. Learn more about contribution limits (or caps).

Important Information

It's advisable that you and your employer clearly state and agree on all the terms of any salary sacrifice arrangement. The contract is usually in writing, but may be a verbal one.

If you enter into an undocumented salary sacrifice arrangement, you may have difficulty establishing the facts of your arrangement.

If you have a contract of employment, you and your employer may need to review the terms and conditions of your contract to ensure the arrangement of your salary sacrifice is effective. 

If you are unable to negotiate a satisfactory salary sacrifice arrangement with your employer, you may wish to consider making voluntary after tax contributions and claiming a tax deduction.