Choose a salary sacrifice amount that’s right for you

Boost your super beyond what your employer pays

You can ask your employer to pay part of your pre-tax salary into super. Your Salary Sacrifice contributions are generally taxed at 15% which is likely to be less than your normal income tax rate, that’s a win-win. (There are contribution caps so make sure it’s right for you).
 
Note: If your annual income is more than $250,000 (including before-tax super contributions), you might pay extra tax on these contributions – check the ATO’s website for more details.

Things you should know

Want some tax back?

Want some tax back?


With Salary Sacrifice your contributions are generally taxed at 15%, likely to be less than your normal tax rate. But the government does limit how much you can contribute. If you contribute too much you may have to pay additional tax. These limits are known as contribution caps.

The cap for 2022-23 financial year on before-tax contributions is $27,500 per year (including Superannuation Guarantee contributions made by your employer)1. If you want to know the details, visit here or visit the ATO’s website for more information.

Catch up on your contributions

Catch up on your contributions


From 1 July 2019, if your total super balance is less than $500,000 on 30 June of the previous financial year, you may be able to contribute more than the before-tax contributions cap by using any unused cap amounts from previous financial years. This is called a ‘carry forward’ contribution’. You can use the carry forward unused amounts from 1 July 2018, for up to five years.

For example, assuming you qualify to carry forward, if you make a before-tax contribution of $20,000 in 2018-19, 2019-20, 2020-21 and 2021-22, your unused cap amount would be $22,500. 

Financial Year Standard Concessional cap Used Unused concessional cap amount
2018/19 $25,000 $20,000 $5,000
2019/20 $25,000 $20,000 $5,000
2020/21 $25,000 $20,000 $5,000
2021/22 $27,500 $20,000 $7,500
Total     $22,500
Financial Year 2018/19
Standard Concessional cap $25,000
Used $20,000
Unused concessional cap amount $5,000
Financial Year 2019/20
Standard Concessional cap $25,000
Used $20,000
Unused concessional cap amount $5,000
Financial Year 2020/21
Standard Concessional cap $25,000
Used $20,000
Unused concessional cap amount $5,000
Financial Year 2021/22
Standard Concessional cap $27,500
Used $20,000
Unused concessional cap amount $7,500
Financial Year Total
Standard Concessional cap  
Used  
Unused concessional cap amount $22,500

In 2022-23 you’ll be able to make before-tax contribution totalling up to $50,000 (the 2022-23 cap of $27,500 plus unused cap amounts totalling $22,500). Any carry forward amounts you accrue will expire if you don’t use them after five years.

You can keep track of your before-tax contributions online via the ATO website, in Member Access or via the Rest App. Only contributions made to Rest will be tracked, you should consider checking your total contributions to all funds in a financial year to make sure you do not exceed the caps.

Exceeding the caps

Exceeding the caps


Generally, your before-tax contributions (or concessional contributions) are taxed at 15%. However, a higher rate of tax may be payable if your income and before-tax contributions are more than $250,000 in a financial year.

If you go over the caps, you will pay extra tax equivalent to your marginal tax rate on the excess contributions (less the 15% tax already paid). The excess amount will be counted as an after-tax contribution (After-tax contributions are also subject to annual caps). You may also have the option of withdrawing the excess amount out of your account, and this excess amount will not count towards your non-concessional contribution cap. The Australian Tax Office (ATO) will send you information on your options should you exceed the cap in a financial year. For more information, visit the ATO website.

How much should you contribute?

Check out our Contributions Optimiser to figure out just how much difference everyday savings can make to your future.

Ask us Anything

With our help and advice on your side, it’s easier to feel confident about your financial future. Have a chat with a Rest Adviser* and see if your contributions are working hard for you.

*Rest Advice is provided by Rest advisers as authorised representatives of Link Advice Pty Ltd ABN 36 105 811 836 AFSL 258145

1 If you’re aged between 67 and 74, you’ll need to meet the work test to claim a personal superannuation contribution deduction. From 1 July 2022 if you’re under age 75 you’ll no longer need to meet the work test for salary sacrifice and non-concessional (after tax) contributions, including spouse contributions. Click here to learn more about the work test.