Change your Salary Sacrifice Today

As of 1 July 2017 the concessional contributions cap is reducing to $25,000 for everyone irrespective of age. If you have a salary sacrifice arrangement in place, you will probably need to adjust it down. Most payroll departments need several weeks notice to make any change, therefore why not do it today?

The concessional contributions cap measures your 9.5% SGC and your salary sacrifice amounts combined. If you go over the cap there will be excess tax to pay, so try to avoid this if at all possible.

A little known catch is that if you have an employer superfund which includes “free” insurance, the value of the premiums paid for the policy is generally also included in your cap. Your salary sacrifice amount may need to be further reduced to take these premiums into account. However, unfortunately the $ value of the premiums paid can be hard to ascertain in advance.

If you need assistance please get in touch.

Lindsay 0413 952 180

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