Salary Sacrifice Calculator For Superannuation

The salary sacrifice calculator, below, will show you:

  • How much you should be receiving in employer contributions; and
  • How much you are able to salary sacrifice in the current financial year.

Salary Sacrifice Super Calculator

The salary sacrifice calculator, below, allows you to calculate the amount you are able to salary sacrifice in the current financial year, up to the general concessional contribution cap.

How To Use the Salary Sacrifice Super Calculator

The salary sacrifice calculator allows you to calculate the amount you are able to salary sacrifice into super in the current financial year, up to the general concessional contribution cap, by following these simple steps.

  1. Enter your annual salary for the financial year.
  2. This will automatically calculate the standard superannuation guarantee (SG) contributions your employer will pay into your account (may be higher for certain employees – check payslip or employment agreement).
  3. This will calculate the maximum amount you are able to salary sacrifice, based on the concessional contribution cap, minus the employer super contributions received.
  4. This is the maximum amount of SG contributions required to be paid by your employer into your super account in any one financial year, regardless of how high your wage is (subject to your employment agreement and/or employer’s discretion to pay more).

What Is Salary Sacrifice?

Salary sacrifice is an agreement with your employer to reduce your wage in exchange for increased super contributions, equivalent to the reduction in your wage.

The benefits of salary sacrificing include:

  • Reducing the amount of wage assessed for tax at your individual tax rate; and
  • Increasing your savings within the tax-effective superannuation environment.

The downside of salary sacrificing is that you are unable to access any amount salary-sacrificed into superannuation until you are eligible to access your super. Plus, you should be aware that all salary sacrifice contributions incur contributions tax of 15% upon entering your super fund (plus an additional 15% for very high income earners).

What is a Superannuation Salary Sacrifice Calculator?

A superannuation salary sacrifice calculator shows you how much you can salary sacrifice into superannuation, based on your annual salary and the general concessional contribution cap.

When to Use a Super Salary Sacrifice Calculator?

You should use the salary sacrifice calculator when you are considering salary sacrificing part of your wage into superannuation. The calculator can help ensure that you do not exceed the concessional contribution cap, which could otherwise result in excess contributions tax and contributions counting towards your non-concessional contribution cap.

Salary sacrificing into superannuation is a tax-effective retirement planning strategy, allowing you to build wealth towards retirement. It can be particularly beneficial in the years leading up to retirement, as there is only a short time before such contributions can be accessed again.

Salary sacrificing is an integral part of a transition to retirement strategy, which can provide significant tax benefits, especially when used in conjunction with carry-forward unused concessional contribution caps.

If you are less than five years away from retirement and would like to optimise your financial position between now and then, check out our retirement planning advice process here. Even if you’re only months out from retirement, we’ve got a few strategies for you.

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