When salary sacrifice might not be right for you

Salary sacrifice is a great way to boost your super, but there are some circumstances where it might not be the right choice for you.

Here’s where salary sacrifice could be a disadvantage:

• If your taxable income is less than $90,000 and you access your benefit before your preservation age, your overall tax may not reduce significantly
• If you exceed the contribution cap, you could lose the tax benefit of salary sacrificing. Salary sacrificed contributions are treated as employer contributions and in relation to taxed schemes, such as GESB Super, are capped each year
• The Australian Government Super Co-contribution does not apply to salary sacrifice contributions, so these contributions won’t be matched by the government. Find out more about the Government super co-contribution

It’s important to remember that once you add money to super, you generally can’t access it until you meet what’s known as a condition of release, e.g. when you retire.

It’s also important to consider your personal circumstances when making financial decisions, such as when to salary sacrifice. You may wish to consider seeking personal financial advice.