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.

Example 5

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:

  • 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.
End of example

See also:

    Last modified: 01 Sep 2016QC 22119