Salary-sacrifice contributions

Salary sacrifice to superannuation is an arrangement between an employee and an employer where the employee has superannuation contributions deducted from their salary before tax is deducted.

These contributions are treated as employer contributions and attract the Commonwealth Government's 15% contributions tax on entry to the scheme. This means the amount a member contributes needs to be increased (or grossed up) by the amount of contributions tax, so that the same net contribution to SSS is made as an after-tax contribution.

Is salary sacrifice right for you?

Whether salary sacrifice is right for you depends on your individual circumstances. There is an easy-to-use calculator on our website that shows the effect of making contributions via salary sacrifice, after-tax contributions or a combination of both. Alternatively, we recommend you seek professional financial planning advice.

• Compare the different options using the salary sacrifice calculator
• Refer to SSS Fact Sheet 24: Salary sacrifice your compulsory personal contributions to SSS for more information about how salary sacrificing works
• It's important to remember that salary sacrifice contributions are counted in full towards the concessional contributions cap. For more information on concessional contribution limits see SSS Fact Sheet 23: Concessional contributions cap
• Seek professional financial advice. StatePlus can recommend an appropriate salary sacrifice strategy for your personal situation. For an appointment, call StatePlus on 1800 620 305 or visit www.stateplus.com.au.

Note: State Super Financial Services Australia Limited, trading as StatePlus, is the holder of an Australian Financial Services Licence 238430, ABN 86 003 742 756. StatePlus is a ‘for profit’ financial services organisation which also provides financial planning advice. As of 6 June 2016, StatePlus is wholly owned by FSS Trustee Corporation (ABN 11 118 202 672 and AFSL 293340) as trustee of the First State Superannuation Scheme (ABN 53 226 460 365). StatePlus has its own Board and Management team. State Super does not pay any fees to StatePlus for the financial advice and member seminar services it provides to State Super members. State Super is not a representative of StatePlus and receives no commission when making referrals to StatePlus for financial planning services. Neither State Super nor the New South Wales Government take any responsibility for the services offered by StatePlus, nor do they or StatePlus guarantee the performance of any service or product provided by StatePlus.