How much should I salary sacrifice into my super? Your employer must pay at least 10% of your ‘ordinary time earnings’ into your super account. The minimum amount that your employer must pay into your
How much should I salary sacrifice into my super?
Your employer must pay at least 10% of your ‘ordinary time earnings’ into your super account. The minimum amount that your employer must pay into your superannuation fund. It is currently 10% of your gross salary.
How much of your salary can you salary sacrifice?
Salary sacrificed super contributions are paid on top of your employer’s compulsory super contributions, which is currently 9.5% of your salary. There’s no limit on how much you can salary sacrifice into super. However, it’s important to consider your concessional contributions cap. This is currently $25,000.
How much super Can I salary sacrifice 2021?
Concessional contributions are contributions that are made into your super fund before tax. They are taxed at a rate of 15% in your super fund. From 1 July 2021, the concessional contributions cap is $27,500. The increase is a result of indexation in line with average weekly ordinary time earnings (AWOTE).
How do you optimize salary sacrifice?
Boost your retirement fund by nominating part of your salary to go straight to your super. You can put extra money into your super before your salary reaches your bank account – this can potentially reduce your taxable income and you may be able to pay less tax and save money in the process.
Is it a good idea to salary sacrifice super?
The good news is, it’s never too late to start growing your retirement income, no matter what your situation. Salary sacrificing into super is a long-term wealth strategy that may help to grow your retirement savings over time.
What is the maximum amount you can salary sacrifice?
How much can I salary sacrifice? The annual cap for before-tax super contributions is $27,500 p.a. in 2021/22. This includes the regular super contributions made by your employer (usually 10%), any salary sacrifice contributions and any personal contributions where you intend to claim a tax deduction.