Salary sacrifice means that you give up some of your take home pay. Your employer re-directs that money into super. In this way you can grow your super savings and at the same time, reduce your taxable income.
Your employer deducts money from your before-tax salary each pay.
If you’re earning a high income extra payments to your super may help to reduce your tax. This is because super contributions are taxed at a lower rate than regular income.
However, if your combined salary and super contributions exceed $250,000 the tax benefit is reduced as you pay an extra 15% on before-tax contributions over the $250,000 limit.