Want to build a better retirement?

Will the contributions that your employer makes be enough for you to retire comfortably? Salary sacrifice can help you boost your super and potentially pay less tax.

What is salary sacrifice?

Salary sacrifice allows you to make contributions to your super using pre-tax dollars. This gives you the opportunity to boost your super balance and pocket some handy tax benefits at the same time.

It involves giving up some of your take-home pay (it doesn’t need to be forever) and asking your employer to contribute it to your super instead.

 

You can save on tax using salary sacrifice

By putting away some of your before-tax earnings, you’ll be taxed at the special rate of 15%, allowing you to save money in more ways than one. The tax saving you may receive is the difference between your marginal tax rate plus the Medicare levy and the Budget Repair levy (a total of up to 49%) and the super tax rate (which is 15%).

 

Let’s look at an example…High-res graphic

Jack has saved a total of $1,170 in tax by using salary sacrifice to make his additional super contribution.

 

Super-size the growth of your investment

Over time, you’ll enjoy the benefit of compounding returns in your super fund and as your account grows over time you’ll see how even a little extra contribution now, can mean a lot to your savings at retirement.

 

How to start building your super today

Cbus members have access to our team of qualified financial advisers. Call our Cbus Advice Team on 1300 361 784 (Press 4 to be connected) 8am to 8pm Monday to Friday AEST. Or if you want to put more money into a Cbus super account now, download the Salary sacrifice form from www.cbussuper.com.au/salsac and give it to your employer.

This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Call Cbus on 1300 361 784 or visit www.cbussuper.com.au for a copy.  Advice you receive may be provided by a third party AFSL holder. Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 754 933 632 62.

 

 

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