logo of Meezan Wealth

Salary Sacrifice (before tax)

Start putting pre-tax salary
into your super now, to avoid
sacrifices down the road.


What is salary sacrificing
and how does it work?

When you “sacrifice” some of your salary, you make an agreement with your employer to pay it straight into your super account, instead of your bank account. This is an amount on top of your employer’s compulsory Superannuation Guarantee payment (9.5% of your salary).

01You pay less tax

Salary in your super account gets taxed at 15% (if you earn less than $250,000) or 30% (if you earn more than $250,000). However, any salary you take home gets taxed at your usual income rate, which can be as high as 47%.

02You reduce your taxable income

The more salary you put into your super, the smaller your taxable income may be — and that could mean even more savings at tax time.

Setting up salary sacrificing to save more for your retirement might seem like a no-brainer. In addition to considering your debt levels before adding to your super, weigh up the following:

01It’s not as effective for low-income earners

If you earn less than $37,000, you’ll only save a small amount on tax – it’s probably not worth having less in your pocket on payday for a small tax gain.

02It may impact your current benefits

When you salary sacrifice, you change your salary. This means that benefits like holiday loading and overtime might be affected if they’re tied to your salary. To protect your benefits while salary sacrificing, you’ll need to reach an agreement with your employer.

03You can’t claim deductions/tax offsets on sacrificed amounts

You can’t claim deductions/tax offsets on sacrificed amounts

04There’s a $25,000 limit on concessional contributions (including employer contributions).

Any amounts over the $25,000 p.a. limit will be taxed at your marginal tax rate, plus an excess concessional contributions charge. From 1 July 2019 you may be able to carry forward any unused portion of the concessional contributions cap from previous financial years. Eligibility criteria applies, see the Super contributions limit fact sheet for full details.

How to get started

If you’d like to start adding more to your super
through salary sacrificing. then consult with one
of our financial advisors

What Our Clients Say

“We would like to express our thanks for the work you have done for us over the past years. The expertise and attention to detail with which you have handled our financial affairs could not be faulted. Particularly reassuring to us is our feeling of certainty in the absolute integrity of your dealings with us. Your continual advice on financial planning issues has saved us significant amounts of money. May you prosper,
along with your clients.”

Dr Mutasim Sadiq

“We were very impressed with the support and updates provided by Irshad during our loan process. This process can be frustrating at the best of times and Irshad always made sure we were informed on the application progress. Thanks again for all your help.”

Rashed Mohammed Abu
IT Business owner

“I can’ t see how I could have organised this finance myself, given the difficulties with communication with the sellers and the solicitor, so we really thank you for all the chasing up you did for us.”

Dr Tabassum Hamid

“Meezan finance provided us an outstanding service throughout the whole application process. The staffs were very responsive to our needs, answered our telephone calls and emails promptly, followed up with sellers, solicitors and arranged property settlement for us. We are happy that through Meezan Finance we have achieved the best Islamic loan for our family’s needs. We have no hesitation in recommending Meezan wealth to anyone.”

Usman Saleem
Senior Technical Manager (IBM)

“Passion, knowledge and a genuine interest in achieving the best for clients is what makes a truly professional Financial Adviser. Rokibul always had this and more. His dedication to clients, business excellence and education sets him apart and I would highly recommend him to anyone wanting to achieve better financial outcomes.”

Sameer Syed
IT Developer (Inenco Group)

“I am absolutely delighted with your service. It is really refreshing to work with a financial adviser who is truly interested in their client’s needs, circumstances and preferences. What really impressed me was the way you took the time to get a feeling for where I was at, your depth of knowledge, lateral thinking and your common-sense approach. Your professional, ethical and caring demeanour elicits my trust and respect and I gladly recommend your services whenever possible.”

Amer Islam
IT Consultant

Testimonial Image

Get in Touch

Our qualified team are ready to assist you with your questions.

Talk to Us

1300 141 145


Suite-104, 8 French Avenue, Bankstown, NSW 2200

(Appt only):

Deloitte Building, Level 15, 60 Station Street E, Parramatta 2150