I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super and Retirement

Plan your Retirement Future with Superannuation (Salary Sacrificing)

What Happens when you Salary Sacrifice

When you’re doing salary sacrificing, your net receives part of your income and have it paid on your super income. So rather than sending it to your bank account, it will be paid to your super.

Apart from increasing your super, that also helps you save on tax. And this all comes about due to the different tax rates is paid due to the money that comes in.

So you’re actually paying a tax rate of 15% to contributions by salary sacrificing to your super funds. Whereas alternatively if you’re looking at having income paid to you in the bank account, you will be paying a marginal tax rate.

Looking at the tax rates, you will discover with the first $18,200, you are generally paying no tax. Then it starts to increase up to 21% at the income range of $18,201 - $37,000. From $37,001 - $80,000 you are paying 34.5%. And from $80,001 - $180,000 you are paying 39%, and if you’re earning more than $180,000 you’d get 49%.

You Can Save from Tax through Salary Sacrificing

If you have a thousand dollars of income from your employer, you will have an option. Either have it paid to your super fund through salary sacrifice or have it paid into your bank account and have it taxed at a much larger rate.

If you choose the first option and have it paid into your super funds, you only have a $150 deducted into that super contributions tax which is 15% and which will have $150 paid into your super fund. Whereas alternatively, if you choose that $1000 paid into your bank account, $345 will be deducted in tax which means that only $655 will go to your bank account.

So that’s difference in tax with a $195 in tax savings paid into your super funds if you choose salary sacrifice. So you can see how attractive this becomes. And once you jump into a higher tax bracket, your savings becomes even greater. In fact if your salary is $80,000 it will jump to 24%.

If you want to discover more attractive ways of saving for retirement, feel free to consult with our administrators at www.australiansuperfinder.com.au. You can call us at 1300 252 167

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