Will salary sacrifice work for me?
Will salary sacrifice work for me?
Salary sacrifice contributions receive specific tax treatment, and as a result, this type of contribution tends to be better suited to those who earn at least $18,201 a year with a marginal tax rate of 19% or more.
Those earning less than that amount might benefit more from making after-tax personal contributions in order to take advantage of the government co-contribution. It's probably best to seek financial advice on which type of contribution will suit you.
For higher income earners, it may be worth having a chat to a financial planner as salary sacrificing may take you over the before-tax contribution cap depending on your income. Do you earn over $250,000 per year? If you do, your before-tax contributions will generally be taxed at 30%.
Salary sacrifice contributions receive specific tax treatment, and as a result, this type of contribution tends to be better suited to those who earn at least $18,201 a year with a marginal tax rate of 19% or more.
Those earning less than that amount might benefit more from making after-tax personal contributions in order to take advantage of the government co-contribution. It's probably best to seek financial advice on which type of contribution will suit you.
For higher income earners, it may be worth having a chat to a financial planner as salary sacrificing may take you over the before-tax contribution cap depending on your income. Do you earn over $250,000 per year? If you do, your before-tax contributions will generally be taxed at 30%.