How salary sacrifice can work for you
Contributing from your before-tax pay can be a great way to save your money for the future. See how it could work for you.
Contributing from your before-tax pay can be a great way to save your money for the future. Here’s why:
1. 15% contributions tax for earnings under $250k. For earnings of $250k or over the tax rate is 30%.
2. Marginal tax rate of 45% plus 2% Medicare levy.
3. Concessional (pre-tax) contributions are limited to $25,000 in a financial year. This amount includes your employer super guarantee payments. If you go over this amount, additional tax applies.
Tax considerations are general and based on present tax laws and may be subject to change. Colonial First State Investments Limited is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek independent, professional tax advice from a registered tax agent or registered tax (financial) adviser before making any decision based on this information or if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that could arise under a taxation law.
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products is available at colonialfirststate.com.au or by calling us on 13 13 36.