Your adviser may have suggested that you consider salary sacrificing because it can be a tax-effective way to boost your superannuation savings.
Salary sacrificing involves arranging with your employer to have a portion of your before-tax salary paid directly into your superannuation account instead of being paid to you as take-home pay. The salary sacrificed amount is taxed at the concessional rate of 15%, which is generally lower than most people's marginal tax rate. This means that you can potentially reduce your taxable income and overall tax liability.
By salary sacrificing, you can increase your superannuation balance more quickly than if you only rely on employer contributions or personal contributions made after-tax. Over time, the additional contributions and earnings from salary sacrificing can grow your superannuation balance and potentially help you achieve your retirement savings goals.
There are some limitations to consider when salary sacrificing, such as contribution caps and potential impact on government benefits. It's important to seek professional financial advice before deciding if salary sacrificing is appropriate for your personal circumstances and financial goals.
Your adviser can help you evaluate your options and ensure that you are making the most tax-effective choices for your financial situation.
Salary sacrificing involves arranging with your employer to have a portion of your before-tax salary paid directly into your superannuation account instead of being paid to you as take-home pay. The salary sacrificed amount is taxed at the concessional rate of 15%, which is generally lower than most people's marginal tax rate. This means that you can potentially reduce your taxable income and overall tax liability.
By salary sacrificing, you can increase your superannuation balance more quickly than if you only rely on employer contributions or personal contributions made after-tax. Over time, the additional contributions and earnings from salary sacrificing can grow your superannuation balance and potentially help you achieve your retirement savings goals.
There are some limitations to consider when salary sacrificing, such as contribution caps and potential impact on government benefits. It's important to seek professional financial advice before deciding if salary sacrificing is appropriate for your personal circumstances and financial goals.
Your adviser can help you evaluate your options and ensure that you are making the most tax-effective choices for your financial situation.
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