Salary sacrifice

Watch this short video to learn about salary sacrifice

Salary sacrifice is generally a tax-effective way to grow your super account. This is when you ‘sacrifice’ part of your before-tax salary to your super account, instead of having it paid to you.

You can salary sacrifice to your GESB Super or West State Super account if you’re currently employed in the WA public sector.

If you’re a Gold State Super member and you would like to make salary sacrifice contributions over your maximum Average Contribution Rate, they need to be made to your GESB Super or West State Super account.

If you don’t already have one of these accounts, we can automatically open a GESB Super account for your extra contributions.

Benefits of salary sacrificing

Here are some reasons you might decide to salary sacrifice:

  • You’ll pay less income tax
    Your taxable income is reduced by the amount you salary sacrifice, which means you could pay less income tax.
  • There could be other tax benefits
    Super is generally taxed1 at what’s known as a concessional rate of 15%. If you compare this to your marginal tax rate, your total benefit (i.e. net income plus super) could increase through salary sacrificing. This tax benefit depends on your personal circumstances.
  • Salary sacrifice is flexible
    You can easily start, stop or change your salary sacrifice contribution amount as your situation changes.
  • It’s cost-effective
    You can generally salary sacrifice contributions at no cost into your GESB account through your employer, if you are a WA public sector employee.

See how salary sacrifice works with your account

Salary sacrifice rules, including contribution caps, are different depending on which type of account you have with us.

Here are some examples to highlight how salary sacrifice could work with your account:

It’s easy to get started – just follow these four simple steps

1. Find out if salary sacrifice is right for you

Salary sacrifice is a great way to grow your super but there are a number of factors to consider first.

Salary sacrifice may not be the best option for you if your taxable income is likely to fall under the tax-free threshold. You need to consider the tax rates appropriate to your annual taxable income.

Below are some other important things to know before deciding to salary sacrifice. If you want to know more specific information around your unique situation, such as how much to sacrifice, you may want to get professional advice from a qualified financial adviser.

2. Work out how much you’d like to salary sacrifice

Work out how to make the most of your salary sacrifice contributions, by using our Contributions calculator.

Fill in how much you’re willing to give up from your take-home pay, and we’ll estimate the most effective way for you to make your contributions.

Try our Contributions calculator

3. Check with your employer

When you’re working out the best way to add to your super, check with your employer to confirm what salary sacrifice arrangements they have.

If you only want to salary sacrifice directly to your super account, you can usually do this at no cost through your employer’s payroll system, if this is in line with your employer’s agreement.

Your employer should be able to arrange for your super contributions to be deducted from your before-tax salary.

Please note, salary sacrificing will not affect the amount of Superannuation Guarantee your employer contributes to your account.

4. Start salary sacrificing

Simply complete our online Payroll deduction form or download and complete our PDF form and give it to your employer.

They will send your contributions directly to us on your behalf. If you already have another type of salary sacrifice set up, simply contact your salary packaging provider for details on how to set up salary sacrifice for your super.

If you would like to go through a salary packaging provider you or your employer already use, simply contact them for help setting up your salary sacrifice arrangements. You may be charged a fee by the provider.

Apply online

Other important things to know

Before you decide to salary sacrifice to your super, it's important to understand:

  • 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 important to find out how your super will be taxed
  • In accordance with WA State Government policy, if you want to salary sacrifice more than 50% of your total employment cost3, you will need to obtain financial advice before entering into a salary sacrifice arrangement
  • Salary sacrifice is a type of contribution you make before tax (when you make after-tax contributions, tax has already been paid so no further tax applies to these contributions)
  • Salary sacrifice contributions don’t count towards the Commonwealth Government Super Co-contribution
  • There is a limit to the amount of concessional (before-tax) contributions you can make to your super each financial year. Find out more about the contribution caps
  • The amount you salary sacrifice will be reported by your employer on your PAYG payment summary - this amount could affect whether you’re eligible for:
    • The spouse super contributions tax offset
    • A deduction for personal super contributions
    • All dependant tax offsets
    • Services Australia and Centrelink benefits (e.g. Family Tax Benefit, Child Care Subsidy)

1 West State Super and Gold State Super are untaxed schemes. Tax is generally only payable when you access your benefit, or when you roll over to a taxed scheme or retirement income stream. For more information, read the Tax and super brochure.
2 We can accept contributions received up to 28 days after you turn 75.
3 Your total employment cost is made up of your base salary, other cash allowances, non-cash benefits, any fringe benefits tax liabilities currently paid by your employer and any variable components. You should talk to your employer if you need to confirm the value of your total employment cost.

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Page last updated 09 November 2023

Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 26 April 2024.