Salary Packaging your Superannuation:

Can you Salary Package your Superannuation?

The answer is, possibly.  It depends on who you work for and what type of organisation they are (eg. Government or private etc).

Each employer is different; therefore it pays to speak to the experts to find out.

The wonderful thing of being able to Salary Package your Superannuation is that, just like all other Salary Packaging, all your contributions made towards your Superannuation will be in Pre Tax dollars. Therefore the funds that you are putting into your Superannuation are helping you to lower your taxable income and the tax you pay!

What are the real benefits of Salary Packaging your Superannuation?

Super contributions do not attract Fringe Benefits Tax (FBT). If Salary Packaged Super contributions are made to a complying super fund and the packaged amounts are not considered a Fringe Benefits Tax, which saves you money.

If you are Salary Packaging your Superannuation, the contributions which you are packaging are taxed in the Superannuation fund at a maximum rate of 15%.

In most cases, the amount of tax which you pay to the Superannuation fund, is less than what you would pay if you did not enter into a Salary Packaging agreement, as you would be paying PAYG withholding tax on your earnings.

EXAMPLE

Jane and Jack are both earning $47,000 a year. Jane then Salary Packaged $11,000 of her gross income into her super fund. Jack did not Salary Package any of his salary.

Click here to speak to the experts at Financial Advisers Australia, to discuss how you can Salary Package your Superannuation and ensure it is working to best suit your individual situation.

Perhaps, if you can afford to be putting large sums of money into your Superannuation week, you may be able to afford great tax effective ways of making sure that you have enough money to retire on.