Salary Packaging Additional Super Contributions

Salary Packaging Additional Super Contributions

🌟 Why It Matters

At the NTAA 2025 Tax Schools Day 1 seminar, experts emphasized how salary sacrificing extra into super can significantly reduce taxable income and boost retirement savings after recent changes in tax rates and contribution caps

📈 What’s New from 1 July 2024

Concessional (Pre-Tax) Cap Increased

From $27,500 to $30,000
Additional allowance to salary package more before tax, reducing taxable income.

Non-Concessional (After-Tax) Cap Increased

From $110,000 to $120,000
Larger opportunities for post-tax contributions, especially using bring-forward rules.

Stage 3 Tax Cuts Reduce Marginal Rates

Up to 30% on incomes between $45,001–$135,000; 37% on $135,001–$190,000
Lower marginal tax rates may impact the relative benefit of salary packaging—but remain effective for many.

✅ Salary Sacrifice into Super is Still Worth It

Contributions taxed at 15% inside super vs. up to 45% personally—delivering substantial tax savings.
Particularly effective for those in higher tax brackets or balancing capital gains tax liabilities.

📊 Smart Use of Cap Increases

Boost pre‑tax super up to $30,000 to reduce taxable income.
Consider the bring-forward rule on non‑concessional cap ($360,000 over 3 years) for larger contributions

⏱ Timing Matters

Ensure contributions occur before 30 June 2025 to count in the 2024–25 caps.
Lodge a Notice of Intent with your fund to claim deductions before you lodge your tax return.

⚠️ Watch Out for ATS:

Additional contributions may trigger Division 293 tax if total income + super exceeds $250,000.
Check Your Total Super Balance (TSB) to avoid breaching non-concessional limits.

👥 Who Can Benefit Most

Higher-income earners wanting to lower taxable income
Those facing large capital gains from asset sales
Individuals nearing preservation age seeking accelerated super savings
Owners of Self-Managed Super Funds (SMSFs) wanting strategic control

Disclaimer for External Distribution Purposes:

The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. The receiver of this document accepts that this publication may only be distributed for the purposes previously stipulated and agreed upon at subscription. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Falconbridge office or Luera office in Blue Mountains office to arrange a one-on-one consultation. Just Book Free Consulation up on the right to find the appointment options.

Yan Qi CA

Mobile: 0403 050 779

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

0 Comments

Previous Post Next Post

Federal Budget

June 30, 2026

Year-End Preparation – Key Steps to Get Ready for Tax Time

June 25, 2026

Tax Planning Matters – Why Reviewing Your Tax Position Early Is Important

June 18, 2026

BAS Lodgment Support – Ensuring Accurate GST Reporting

June 4, 2026

Salary Packaging Additional Super Contributions

Leave a comment

Related Posts

Federal Budget

Year-End Preparation – Key Steps to Get Ready for Tax Time

Tax Planning Matters – Why Reviewing Your Tax Position Early Is Important

BAS Lodgment Support – Ensuring Accurate GST Reporting

Archive

Book Your Free Consultation