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Salary Sacrifice is one of the simplest and most tax effective ways to boost your super savings for an enjoyable retirement.
When you sacrifice some of your salary to super, you not only increase the amount of money you'll have in retirement, but you can reduce the income tax you have to pay now. Plus, Salary Sacrifice is hassle free because your employer makes the contributions for you.
With changes to the way super is taxed after age 60, Salary Sacrifice has become even more attractive for most Australians.
How does Salary Sacrifice work?
Salary Sacrifice into your super is an arrangement between you and your employer where you forego part of your salary. In exchange, your employer contributes the money to your super.
This is separate from any employer support you already receive towards your super. For tax purposes Salary Sacrifice contributions are treated as an employer contribution and will count towards your annual concessional contribution limit.
Contributions Tax of 15% on the amount you Salary Sacrifice is payable as the money goes into RBF. This is usually a low rate of tax compared to the rate you would have paid as income tax on that salary amount.
It's worthwhile assessing Salary Sacrifice as a contribution option, however, it will not be the best option for everyone. You can contact RBF to discuss your options.
If you'd like a snapshot of how Salary Sacrifice could benefit you, use RBF's Salary Sacrifice calculator.
Who can Salary Sacrifice?
Salary Sacrifice is available to most Tasmanian public sector employees.
If you're a member of the RBF Contributory Scheme, TASSS or SFCSS you are now able to Salary Sacrifice into your defined benefit schemes.
Need more information on Salary Sacrifice?
If you would like more detailed information on Salary Sacrifice, depending on which scheme you belong to, you can read the Salary Sacrifice fact sheet for:
Or you can contact RBF now to discuss Salary Sacrifice.
To invite an RBF speaker to your workplace or conference email super@rbf.com.au
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Case Studies:
Vivian, age 44. Senior Manager. Income of $85,000 per year.
Daniel, age 32. Business Analyst. Income of $50,000 per year.
Joanne, age 27. Project Officer. Income of $29,000 per year.
Joseph, age 51. RBF Contributory Scheme member. Teacher.
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