An easy strategy that allows you to boost your super from your pre-tax salary and potentially pay less tax.

Boost your super and save on tax

One of the easiest ways to boost your super is to set up ongoing contributions from your pre-tax pay. It's called salary sacrifice and it generally lets you pay less tax and boost your super directly from your pay. It's easy to set up and by contributing a little each pay, you'll hardly notice a difference.

Hands in sunshine

Small sacrifices can make a big difference

By making pre-tax contributions into your super account, you could save on tax now by reducing your taxable income.  Pre-tax contributions, also referred to as concessional contributions, are taxed at 15%* once they’re in your super account which can be lower than your marginal tax rate. 

You’ll be surprised how even the smallest amount each pay can make a big difference to your final super balance. Use our pre-tax vs post-tax calculator to see for yourself.

Pre-tax vs post-tax contributions calculator

Adding a little extra to your super now could make a difference to your lifestyle in retirement. So the sooner you start the harder your super savings will work for you in the future. 

Know your limit

There is a limit on the amount of pre-tax contributions you can make to your super and if you go over, you may have to pay extra tax. 

View pre-tax contributions and limit

How to salary sacrifice

Once you know how much you’d like to deduct from your pre-tax salary contact your payroll team. If you are a Telstra employee, you can simply nominate an amount through 'Workday'.

Things to consider

If you’re a low or middle income earner, post-tax contributions might be a better option as you could be eligible for a government co-contribution.

 

*If your salary package is less than $250,000 per year.

Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.