Salary sacrificed super
A salary sacrifice arrangement is a contractual agreement with your employer to forego part of your future salary or wages in return for benefits of a similar value. You can't enter a salary sacrifice arrangement for salary or wages you already earned.
Under a salary sacrifice arrangement, you can negotiate with your employer for them to make extra super contributions from your pre-tax income. These extra contributions are reportable employer super contributions.
Under Jill’s industrial agreement, her employer must contribute 10% of her ordinary time earnings to an industry super fund.
Part way through the year, Jill enters into a salary sacrifice agreement with her employer to contribute an extra $10,000 of her pre-tax salary to the same super fund.
Only the additional $10,000 of the employer contributions are reportable employer super contributions Jill’s employer must report on her payment summary.
This is because:
End of example
- the contributions are additional to the compulsory contributions Jill’s employer has to make
- Jill directly influenced the amount of extra super her employer pays for her benefit.