Salary Sacrifice Strategies – 2024-25

How salary sacrifice to super works in Australia. Learn how to reduce your tax bill by contributing more to superannuation through pre-tax salary sacrifice.

How Salary Sacrifice Works

Salary sacrifice is an arrangement where you direct part of your pre-tax salary into superannuation. Because super contributions are taxed at just 15% (vs your marginal rate), you save the difference.

• In the 30% bracket: Save 15% on every dollar sacrificed (30% marginal – 15% super tax).
• In the 37% bracket: Save 22% on every dollar sacrificed.
• In the 45% bracket: Save 30% on every dollar sacrificed.
• Concessional cap: Total employer + sacrifice contributions must stay under $30,000/year.