Save Tax By Salary Sacrifice

Save Tax By Salary Sacrifice

You can save income Tax by sacrificing your Salary (Salary sacrifice)

Salary sacrifice is an arrangement whereby you forego part of your salary or wages in return for your employer providing benefits of a similar value.

One example of a salary sacrifice arrangement is to have some of your salary or wages paid into your super fund instead of to you. You can save more than 40% of Income tax (higher tax slab earners)

If you make super contributions through a salary sacrifice agreement, these contributions are taxed in the super fund at a maximum rate of 15%. Generally, this tax rate is less than your marginal tax rate.

The sacrificed component of your total salary package is not counted as assessable income for tax purposes. This means that it is not subject to pay as you go (PAYG) withholding tax.
Thus you save over 40% of your Income Tax (higher salary earners)

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au