Salary sacrifice¶

Definition. Salary sacrifice is an arrangement where an employee agrees to give up part of their before-tax salary so their employer pays it into super instead, and these are treated by the ATO as concessional contributions.

In plain English¶

Instead of taking all their pay as wages, an employee can ask their employer to put some of their before-tax pay straight into super. Because the money goes in before income tax, the ATO counts it as a concessional contribution. This is on top of the super the employer already has to pay, not instead of it.

Related lessons¶

• Salary sacrifice contributions

General information only — not tax, super or financial advice.