Salary sacrifice vs personal contributions to super

If you are an employee, there are two ways in which you can optimise the tax-effectiveness of your additional super contributions:

  • Opt for a salary sacrifice arrangement, whereby your employer makes additional superannuation contributions beyond the compulsory superannuation guarantee (SG) amount from your pre-tax earnings and reduces your salary accordingly; or
  • Make a personal contribution and claim a tax deduction when you submit your tax return.

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