increase super contributions by salary sacrifice (pre-tax) and save tax

8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax

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SALARY SACRIFICE TO

SUPERANNUATION:

How salary sacrificecontributions can reduce

income tax and improve

super savings

Understanding the potential

of your super contributions using the

Australian Catholic Superannuation

Salary Sacrifice Calculator

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DISCLAIMER

This presentation has been prepared by SCS Super Pty Ltd (ACN 064 712 607, AFSL23055, RSE L0002264), the trustee of the Australian Catholic Superannuation &Retirement Fund ABN 24 680 629 023, RSE R1055436.

Any advice contained in this presentation is of a general nature only, and does nottake into account your personal objectives, financial situation or needs. Prior toacting on any information in this document, you need to take into account yourown financial circumstances, consider the Product Disclosure Statement for anyproduct you are considering, and seek independent financial advice if you areunsure of what action to take.

The material contained in this presentation is based on information received ingood faith from sources within the market and on our understanding of thelegislation at this time.

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SALARY SACRIFICE CALCULATOR

In this presentation well introduce the concept of salary

sacrifice to super and, using the example of Anne, show you how

the Australian Catholic Superannuation Salary Sacrifice

Calculatorcan help determine:

The impact of salary sacrifice (pre-tax) super contributions on your

take home pay1

How salary sacrifice can add to your overall super balance.

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2

The impact of pre-tax superannuation contributions compared to

after-tax contributions


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What are

salary sacrifice

superannuationcontributions?

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5catholicsuper.com.au/calculators

Contributions that come out of your

pre-tax salary.

Additional to your employers 9.5%Superannuation Guarantee contribution.

Paid by your employer into your super accountinstead of being paid to you as salary.
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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What impact

do these

contributionshave?

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Salary sacrifice superannuation contributions

could allow you to save tax by reducing your

taxable income.

Due to the power of compound interest, these

contributions can assist in boosting your final

retirement balance.


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Salary sacrifice superannuation contributions

could allow you to save tax by reducing your

taxable income.

Due to the power of compound interest, these

contributions can assist in boosting your final

retirement balance.

Read more about tax and superannuation here!
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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MEET ANNE

catholicsuper.com.au/calculators 9
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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Anne (50) is a Primary

School Principal earning

$130,000 per year.

Anne heard that making regular

pre-tax contributions to her super

account could make a big difference

to her superannuation balanceandalso allow her to save tax.



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Anne believes she canafford to salary sacrifice

$325 per month into

superannuation.

This is equal to $3,900 per year or

approximately 3% of Annes salary -

added to her employer contributions

of 9.5%, Anne is contributing a total

of 12.5% of her salary to super.



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Anne used the Salary Sacrifice Calculator

to see how salary sacrifice may affect

her income and retirement savings.

http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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IMPACT 1: TAKE HOME PAY

The salary sacrifice calculator shows the impact that pre-tax

and after-tax contributions would have on her taxable income

and annual take home pay.

Annual salary

and tax details

After-tax

contributions

Salary sacrifice

(pre-tax)

contributions

Gross income $130,000 $130,000

Salary sacrifice contributions $0 -$3,900

Taxable income $130,000 $126,100

PAYG Tax $38,647 -$37,126

After-tax contributions -$3,900 $0



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catholicsuper.com.au/calculators

Annual Salary

& Tax details

After-tax

contributions

Salary sacrifice

(pre-tax)

contributions

Gross income $130,000 $130,000

Salary sacrifice contributions $0 -$3,900

Taxable income $130,000 $126,100

PAYG Tax $38,647 -$37,126

After-tax contributions -$3,900 $0

Annual take home pay $87,453 $88,974

Compared to an after-tax contribution of the same value, a

$3,900 pre-tax contribution would reduce Annes taxable

income and increase her take-home pay by $1,521.

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Annual Salary

& Tax details

After-tax

contributions

Salary sacrifice

(pre-tax)

contributions

Gross income

Salary sacrifice contributions

Taxable income

PAYG Tax

After-tax contributions

YOUR Annual take home pay $??,??? $??,???

Click here to try your situation in the calculator

15
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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IMPACT 2: SUPERANNUATION

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Anne uses the calculator to see how pre-tax and after-tax

contributions will impact her superannuation contributions.

Annual Salary

& Tax details

After-tax

contributions

Salary sacrifice

(pre-tax)contributions

Employer SG contributions $12,350 $12,350

Salary sacrifice contributions $0 $3,900

Contributions Tax -$1,852.50 -$2,437.50

After-tax contributions $3,900 $0

Net Super Contributions $14,397.50 $13,812.50

Total Take home pay &

net super contributions$101,850.50 $102,786.50



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IMPACT 2: SUPERANNUATION

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The calculator shows that Annes net super balance will be

higher with an after-tax contribution yet her overall

situation will be better if she makes a pre-tax contribution.

This is because of the way contributions are taxed:

Pre-tax contributions are taxed at 15% which,

in Anne's case, is less than her income tax rate.

After-tax contributions are taxed at a persons regular

income tax rate and are not subject to the

contributions tax.



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Annual Salary

& Tax details

After-tax

contributions

Salary sacrifice

(pre-tax)

contributions




IMPACT: TAKE HOME PAY & SUPER CONTRIBUTIONS


As Anne pays less tax overall, her total take-home pay and

super contributions are $936 more if she makes a pre-tax

contribution compared to an after-tax contribution.


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Annual Salary

& Tax details

After-tax

contributions

Salary sacrifice

(pre-tax)

contributions




IMPACT: TAKE HOME PAY & SUPER CONTRIBUTIONS


As Anne pays less tax overall, her total take-home pay and

super contributions are $936 more if she makes a pre-tax

contribution compared to an after-tax contribution.

click here to try your situation in the calculator


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You too may

be able to

save tax andgrow your

super throughsalary sacrifice

contributions.20


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SALARY SACRIFICE AND YOUR SITUATION

Use the Australian Catholic Superannuation

Salary Sacrifice Calculatorto see how pre-tax and

after-tax super contributions:

Impact your take home pay

Impact your total yearly super contributions

Increase your super balance

Are subject to government contributions


Try the calculator now, click here


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22

How can I make

contributions

to my super?


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MAKING PRE-TAX CONTRIBUTIONS

Contact your pay officeand ask them to deduct the

contributions from your regular pay.

You will need to specify the amount that you would like tocontribute per pay cycle.


Click here for more information on

making contributions
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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MAKING AFTER-TAX CONTRIBUTIONS

Contact your pay office

and set up the contributions

to come out of your regular

after-tax pay.

Alternatively you can pay

directly to Australian

Catholic Superannuation viaBPay, direct debit, cheque

or EFTPOS.


Click here for moreinformation on

making contributions

Easily transfer funds

to your super

account with BPay

Biller Code 444232

Customer Reference no:

[Your account number]
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html


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CONNECT NOW

@AusCathSuper

Australian Catholic Superannuation

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CONTACT

T 1300 658 776

W www.catholicsuper.com.au

E [email protected]
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increase super contributions by salary sacrifice (pre-tax) and save tax

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