Whether it’s $5 or $500, every bit counts – so consider adding what feels right for you.
To set up salary sacrifice, simply send your employer an email, or complete and hand them a salary sacrifice form.
The extra money you put into super now, can make a big difference to your balance in the future.[S1]
Salary sacrifice contributions are taxed at 15%, compared to the tax on your take-home pay, which can be up to 45%.[S2]
Salary sacrifice are payments made on top of the compulsory superannuation contributions your employer pays to your super. If you salary sacrifice, your money goes directly into your super account instead of your pay, so you can reduce your income tax. It’s important to get good advice to make sure salary sacrifice is a good option for your own personal situation as this is general advice only.[AD2]
How you can boost your super with salary sacrifice.
Jacob is 42, earns $117,000 per year and has $145,000 in super.
He salary sacrifices $100 per until he’s 67 ($2,600 per year).
With his extra contributions, Jacob retires with $76,000 more super
Tax Savings
Jacob’s salary is taxed on the amount after salary sacrificing. So it’s reduced to $114,400.
Jacob saves $442 in tax in the first year!
true
Retirement balances are rounded to the nearest $1,000 and are stated in today's dollars, deflated using Average Weekly Ordinary Time Earnings (AWOTE) at 3.7% p.a.
Salary Sacrifice contributions are assumed to be made monthly, are increased in line with annual salary increases of 3.7% p.a. and assumes concessional contribution caps are indexed in line with AWOTE.
Based on average Aware Super male member aged 42 and planning to retire at age 67.
Based on SG of 12%. Based on current legislated tax rates as at 1 July 2025, and incorporating future legislated tax changes up to financial year 2027/28.
Asset-based fee is assumed to be 0.15% p.a., capped at a maximum of $750 p.a. Fee cap is indexed in line with AWOTE of 3.7% p.a.
Fixed fee is assumed to be $52 p.a., increasing in line with assumed wage inflation of 3.7% p.a.
Investment returns are based on the Aware Super MySuper Life Cycle option, assumed to be CPI + 4% until age 55, reducing from CPI + 4% to CPI + 2.75% between the ages 55-65 (inclusive) and CPI + 2.75% from age 65 onwards.
CPI is assumed to be 2.5% p.a.
Investment returns are assumed to be net of tax.
Insurance premiums are based on typical values for a medium risk member.
Projection does not allow for any Low-Income Super Tax Offset (LISTO) or Government Co-Contribution amounts.
This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change. Investment return assumptions are for illustrative purposes only and for simplicity assume an average rate of return each year throughout the investment period. Actual returns year on year may vary materially and can be negative as well. If investment returns/inflation are higher/lower, final balances will differ. Consider if this is right for you and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware. Calculations updated July 2025.
Sam is 50, earns $91,000 per year and has $147,000 in super.
She salary sacrifices $150 per fortnight until she’s 67 ($3,900 per year).
With her extra contributions, Sam retires with $68,000 more super.
Tax Savings
Sam’s salary is taxed on the amount after salary sacrificing. So it’s reduced to $87,100.
Sam saves $663 in tax in the first year!
true
Retirement balances are rounded to the nearest $1,000 and are stated in today's dollars, deflated using Average Weekly Ordinary Time Earnings (AWOTE) at 3.7% p.a.
Salary Sacrifice contributions are assumed to be made monthly, are increased in line with annual salary increases of 3.7% p.a. and assumes concessional contribution caps are indexed in line with AWOTE.
Based on average Aware Super female member aged 50 and planning to retire at age 67.
Based on SG of 12%. Based on current legislated tax rates as at 1 July 2025, and incorporating future legislated tax changes up to financial year 2027/28.
Asset-based fee is assumed to be 0.15% p.a., capped at a maximum of $750 p.a. Fee cap is indexed in line with AWOTE of 3.7% p.a.
Fixed fee is assumed to be $52 p.a., increasing in line with assumed wage inflation of 3.7% p.a.
Investment returns are based on the Aware Super MySuper Life Cycle option, assumed to be CPI + 4% until age 55, reducing from CPI + 4% to CPI + 2.75% between the ages 55-65 (inclusive) and CPI + 2.75% from age 65 onwards.
CPI is assumed to be 2.5% p.a.
Investment returns are assumed to be net of tax.
Insurance premiums are based on typical values for a medium risk member.
Projection does not allow for any Low-Income Super Tax Offset (LISTO) or Government Co-Contribution amounts.
This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change. Investment return assumptions are for illustrative purposes only and for simplicity assume an average rate of return each year throughout the investment period. Actual returns year on year may vary materially and can be negative as well. If investment returns/inflation are higher/lower, final balances will differ. Consider if this is right for you and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware. Calculations updated July 2025.
To set up salary sacrifice with your employer, simply send them an email, or complete a paper form to hand to your employer.
Salary sacrifice is an important part of planning your finances, so it's worth making sure it's right for you. If you're thinking about salary sacrificing into super, consider getting personal advice and checking with your employer.
Before adding to your super, you should consider:
For instance, if you’re not going to access your super for several decades but you’re looking to buy a house soon, personal contributions may not necessarily be the right option for you.
Keep in mind, the earlier in life you start contributing to super, the more it will be worth in years to come.
There are limits on how much you can pay into your super fund each financial year without having to pay extra tax, called contribution caps. The cap on concessional contributions is $30,000 each year and includes both your salary sacrifice and the super contributions your employer pays you. If you go over this limit, you’ll pay extra tax.
If your combined income and concessional contributions exceed $250,000 an additional 15% tax (Division 293) will apply. Seeking professional advice is recommended.
Take advantage of unused concessional caps
If you haven't met the contribution cap of $30,000 this financial year, you can carry the unused amount to the next year. You can carry forward any unused amounts from up to five previous financial years, starting from the 2019/2020 financial year.
Salary sacrificing can be very tax-effective, but the advantages depend on your own situation. For example:
Excess contributions
Be careful that you don't exceed the limits on superannuation contributions (see contributions limits above). This could happen unexpectedly if you receive a bonus or pay rise. If you go over the limit, you'll pay extra tax. Salary sacrifice contributions are taxed at 15%. If your combined income and concessional contributions exceed $250,000 an additional 15% tax (Division 293) will apply.
Eligible tax deductions
Also, you can't claim a tax deduction on salary sacrificed contributions to your super. That's because you didn't pay any income tax on them.
Reduced take home pay
Because some of your pay goes straight to your super, you’ll have less take-home pay. So you'll need to make sure you have enough money left over for your living expenses.
Most people can make salary sacrifice contributions until the age of 75. Once you turn 75, you can’t make salary sacrifice contributions.
It also depends on where you work. Most employers offer super salary sacrifice to their employees, but it’s best to check.
Even small amounts can make a difference. Contributing an extra $10 a week from age 45 could mean you’ll have $13,000 more in retirement.*
Keep in mind, the earlier in life you start contributing to super, the more it will be worth in years to come, because your money has more time to work for you. Earnings generated by superannuation benefits are usually taxed at lower rate than elsewhere.
* Retirement balances are rounded to the nearest $1,000 and are stated in today's dollars, deflated using Average Weekly Ordinary Time Earnings (AWOTE) at 3.7% p.a.
Salary Sacrifice contributions are assumed to be made monthly, are increased in line with annual salary increases of 3.7% p.a. and assumes concessional contribution caps are indexed in line with AWOTE.
Member assumed retirement age is 67.
Based on SG of 12%. Based on current legislated tax rates as at 1 July 2025, and incorporating future legislated tax changes up to financial year 2027/28.
Asset-based fee is assumed to be 0.15% p.a., capped at a maximum of $750 p.a. Fee cap is indexed in line with AWOTE of 3.7% p.a.
Fixed fee is assumed to be $52 p.a., increasing in line with assumed wage inflation of 3.7% p.a.
Investment returns are based on the Aware Super MySuper Life Cycle option, assumed to be CPI + 4% until age 55, reducing from CPI + 4% to CPI + 2.75% between the ages 55-65 (inclusive) and CPI + 2.75% from age 65 onwards.
CPI is assumed to be 2.5% p.a.
Investment returns are assumed to be net of tax.
Insurance premiums are based on typical values for a medium risk member.
Projection does not allow for any Low-Income Super Tax Offset (LISTO) or Government Co-Contribution amounts.
This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change. Investment return assumptions are for illustrative purposes only and for simplicity assume an average rate of return each year throughout the investment period. Actual returns year on year may vary materially and can be negative as well. If investment returns/inflation are higher/lower, final balances will differ. Consider if this is right for you and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware. Calculations updated July 2025.
It’s worrying when markets fall, even though market volatility, or ups and downs, are a normal part of investing. When markets drop you might see low, or even negative returns from your super in the short term. And it probably feels like the worst time to contribute more to your super.
The fact is though, that just the opposite could be true. When markets fall, it can actually be a good time to contribute more. That’s because investments cost less when markets are down, so you can buy more at a lower price, like buying at a discount. History tells us that over time markets recover and rise again, and as this happens you will benefit from growth in the value of your investments. It’s important to get good advice to make sure salary sacrifice is a good option for your own personal situation as this is general advice only.[AD2]
Log in to project your super contributions and see how salary sacrificing can make a difference to your super.
We have a range of advice options to suit your needs. Our team can answer questions about your account at no extra cost[AD2], over the phone or virtually.
[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.
[S1] Before contributing, consider the current annual contribution limits. Exceeding these limits may reduce any tax benefits you could receive. Visit aware.com.au/grow.
[S2] Salary sacrifice will save tax in many but not all circumstances and will cause a reduction in your take home pay.
