Concessional contributions include your employer contributions,
salary sacrificed super contributions and personal contributions you've claimed a tax deduction for.
The total income used to determine if you qualify for any co-contributions is equal to your annual salary before tax and
any salary sacrificed super contribution
A: You need to enter the amount of income you actually receive, your taxable income plus reportable fringe benefits plus
salary sacrificed super contributions.
Salary sacrificed super contributions are classified as employer super contributions, rather than employee contributions.
If Crystal decides to redirect $ 10,000 of her pay into
salary sacrifice super contributions, she will save $ 2,085 in tax, with the extra money going into her super fund.
This means the total of your employer and salary sacrificed contributions must not be more than $ 25,000 each year, see
salary sacrifice super for more information.
Not exact matches
They can include employer
super guarantee contributions, contributions made under a
salary sacrifice arrangement and personal contributions for which a tax deduction has been claimed.
Amounts that an employee chooses to
salary sacrifice (before - tax contributions) are treated as employer contributions for
super guarantee purposes and must be reported.
Here you can start a pension and receive the income tax free from your
super, whilst
salary sacrificing part of your pay to reduce tax outside of
super.
You can add to your own
super with tax - effective
salary sacrifice payments as well as after - tax personal contributions.
On 1 March 2017, Bob thinks he can contribute another $ 5,000 to his
super, so he talks to his employer and arranges for an extra $ 1,000 per month to be
salary sacrificed into his
super.
When making
super guarantee or
salary sacrifice contributions for your employees, you need to pay the SuperStream way.
One example of a
salary sacrifice arrangement is to have some of your
salary or wages paid into your
super fund instead of to you.
additional
salary you wish to
sacrifice will cause you to exceed your concessional (before - tax) contributions cap and attract additional tax — this cap limits the amounts that can be contributed to your
super fund and still receive the concessional tax rate of 15 %
Concessional contributions include your employer's 9.5 %
super guarantee contributions and your own
salary sacrificed contributions.
Making additional contributions to
super from after tax income does not have the tax benefits that come from
salary sacrifice.
There are a many benefits of
salary sacrificing some of your pre-tax
salary into
super, they include:
Salary sacrificing (into super): When you and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation
Salary sacrificing (into
super): When you and your employer agree to pay a portion of your pre-tax
salary as an additional contribution to your superannuation
salary as an additional contribution to your superannuation fund.
Salary sacrificing into
super can save tax and really boost your retirement nest egg.
Making extra mortgage repayments does not give you the upfront tax benefit of making
salary sacrifice contributions into
super.
When you
salary sacrifice into
super you may also be able to reduce the amount of tax you pay.
Transition to retirement (TTR) pension: A TTR pension allows you to reduce working hours in the lead - up to retirement without reducing take - home pay, or to continue working full time and make tax savings by
salary sacrificing heavily into
super and supplementing take - home pay with a
super pension.
If you decide to
salary sacrifice into
super you will need to ask your employer to redirect a portion of your pre-tax pay to your
super fund.
A
salary sacrifice to
super is where you and your employer agree to pay a portion of your pre-tax
salary as an additional concessional contribution to your superannuation account.
These
salary sacrificed contributions will be taxed by the
super fund at 15 %, the same as your employer's contributions.
If you
salary sacrificed $ 1,832 into
super, paying only 15 % tax, $ 1,557 would go into your
super fund.
Before you
sacrifice some of your
salary to
super make sure your employer will continue to calculate your
super guarantee payments on your gross income, before
salary sacrifice.
Employer
super contributions remain the same after
salary sacrifice.
She decides to
sacrifice $ 10,000 of her pre-tax
salary into
super.
By
sacrificing $ 10,000 of
salary to her
super, Sandra is reducing her take - home pay.
Eligible taxpayers that earn up to $ 37,000 a year get an additional
super contribution from the Government, equal to 15 % of before tax (employer and
salary sacrifice)
super contributions, up to $ 500.
If you pay more than 15 % in income tax, you could consider
sacrificing some
salary and asking your employer to pay the same amount as a pre-tax
super contribution.
If an employee
salary -
sacrifices into
super, you make
super contributions to the fund on your employee's behalf.
If you make
super contributions under a
salary -
sacrifice arrangement or make extra
super contributions to a
super fund for an employee, you may need to report those contributions on your employee's payment summary.
A scheme that allows you to reduce working hours in the lead - up to retirement without reducing take - home pay, or to continue working full - time and make significant tax savings by
salary sacrificing heavily into
super and supplementing take - home pay with a
super pension.
You can
salary sacrifice some of your pre-tax income into
Super but there are limits to this.