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• smantha fle

  
  Mar 8

  Reducing Your Tax with Salary Sacrifice

  
  

  Salary sacrifice is simply an agreement you make with your employer to pay part of your pre-tax income into your SMSF.

  
  

  The raw dollar advantage in choosing to salary sacrifice is that the contributions put into your SMSF are not taxed in your name but in your SMSF at 15%. So, if your personal tax rate is more than 15% there is a tax benefit in salary sacrificing. If you sit at the top tax rate of 46.50% you can save up to 31.50% on each dollar you salary sacrifice into your SMSF. By doing this you can add thousands of dollars in tax benefits annually.

  
  

  Claiming Benefits - Claim Co-Contribution

  
  

  The Australian government has retirement set up a scheme which matches dollar for dollar the additional contributions one makes to their superannuation. Although the government's contributions are capped at a certain amount, there is still great opportunity to add to your SMSF balance. Many reputable companies who assist with setting up an SMSF will have all the relevant paper work for you to apply for this scheme.

  
  

   

  Reducing Your Tax with Salary Sacrifice

  Salary sacrifice is simply an agreement you make with your employer to pay part of your pre-tax income into your SMSF.

  The raw dollar advantage in choosing to salary sacrifice is that the contributions put into your SMSF are not taxed in your name but in your SMSF at 15%. So, if your personal tax rate is more than 15% there is a tax benefit in salary sacrificing. If you sit at the top tax rate of 46.50% you can save up to 31.50% on each dollar you salary sacrifice into your SMSF. By doing this you can add thousands of dollars in tax benefits annually.

  Claiming Benefits - Claim Co-Contribution

  The Australian government has retirement set up a scheme which matches dollar for dollar the additional contributions one makes to their superannuation. Although the government's contributions are capped at a certain amount, there is still great opportunity to add to your SMSF balance. Many reputable companies who assist with setting up an SMSF will have all the relevant paper work for you to apply for this scheme.