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Salary Sacrifice

 

Salary sacrifice arrangements commenced on 28 September 2001.

Salary sacrifice provides broader opportunities to employees for their retirement and taxation planning. However, there are a number of complexities which employees should consider as part of their decision-making and obtaining independent financial advice prior to commencing salary sacrifice is recommended.

There is a cap on the amount of concessional contributions that can be made to superannuation funds on behalf of an individual each financial year. Concessional contributions include salary sacrifice contributions, contributions made by your employer and contributions made by the self-employed for which they can claim a tax deduction.

In line with the Budget changes announced by the Commonwealth Government, from 1 July 2009 the following applies:

-		If you are under 50 years of age, you can have up to $25 000 of concessional contributions made in your name each financial year.
-		If you are aged 50 and above, transitional arrangements allow you to have up to $50 000 of concessional contributions made in your name each financial year until 30 June 2012.

You can view the potential effect of salary sacrificing by clicking on the salary sacrifice calculator link below and entering relevant details.

Refer to the fact sheet below or contact the NT Superannuation Office if you require further information.

 

Publication Title	Publication Details
Salary Sacrifice for Superannuation	(pdf 81kb)
Calculator