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Salary Sacrifice

What are salary sacrifice contributions?

Salary Sacrifice contributions are contributions from your pre-tax salary that you can voluntarily make in addition to (not instead of) your regular contributions to MiltarySuper. As these are organised through Defence you will need to contact your Pay Unit in order to start or stop salary sacrifice deductions. 15% tax is deducted from these contributions on receipt in the MilitarySuper Fund.

There is also a limit on the amount of concessional contributions you can pay into your superannuation without incurring additional tax. Concessional contributions include salary sacrifice amounts and employer contributions on which the employer is able to claim a tax deduction. The limit of concessional contributions across all your superannuation Funds is:

  • maximum $50,000 per year; or
  • a transitional limit of $100,000 per year for 5 years (2007-08 to 2011-12) for members over age 50 on or after 1 July 2007

Concessional contributions above the caps will be taxed at the top marginal tax rate (plus the Medicare levy). Concessional contributions above the concessional contributions caps will be counted towards your non-concessional contributions.

Who is eligible to make salary sacrifice contributions?

To be able to make salary sacrifice contributions you must be a current contributing MilitarySuper Member. You cannot make salary sacrifice contributions if you are a preserved benefit Member.

For more information on salary sacrifice, including how to make salary sacrifice payments, please refer to the Salary Sacrifice Contributions (MS16) (PDF, 400KB) fact sheet.

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