You can potentially save on tax by making additional contributions to super.
Salary sacrifice is when you make additional contributions to your super from your pre-tax salary. These pre-tax contributions can help reduce your taxable income, meaning you can potentially pay less tax.
This portion of your income is generally taxed at just 15%, which can be less than your normal marginal tax rate – helping you save money for your retirement.
It’s important to keep in mind that there are caps on the amount you can contribute to your super. Find out more about super contributions caps.
You may also be able to claim a tax offset if you make a contribution to your partner’s super fund, and your partner is a low-income earner, or not working. To claim the tax offset, which is up to $540 per year, you and your partner need to satisfy a number of conditions. Find out more on the Australian Taxation Office (ATO) website.