An arrangement between an employer and employee which involves the employee substituting part of their pre-tax salary for an alternative benefit, such as increased superannuation contributions paid by their employer.
The portion of pre-tax salary of an employee that is given up in exchange for additional contributions by the employer to the employee's superannuation.
for the purposes of assessing the amount a bankrupt will be required by law to contribute towards their bankruptcy, salary sacrifice arrangements with an employer are taken into account. This could be schools fees paid by an employer or additional superannuation paid instead of salary.
This is when your employer makes contributions into your super fund from your salary before deducting PAYE tax. Your contribution is maximised by using pre-tax dollars and the fund is taxed at only 15%, instead of your marginal rate of up to 47% plus 1.5% Medicare levy.
Part of an employee's Salary set aside to cover the payment of Benefits. The components of Salary Sacrifice are: The Benefits payable, The FBT and GST payable, where applicable, All other Government taxes, levies and/or duties, and All Program administrative costs and charges;
An agreement between employer and employee that the employee will receive reduced salary plus some other benefit (eg superannuation). This may result in tax savings. Salary sacrifice superannuation contributions may also be known as "deemed" contributions.
The part of the remuneration package set aside to cover benefits and related costs
An arrangement made with the approval of your employer that involves exchanging part of your pre-tax salary for additional super contributions from your employer.
An arrangement whereby an employee gives up the right to receive part of their pay, due under their contract of employment, in return for the employer’s agreement to provide them with some form of non-cash benefit instead – such as an employer pension contribution.
A term used to describe an election made by an employee to forego salary in exchange for another benefit. Salary sacrifice must be made in advance of an employee being entitled to the salary or bonus.
The ability to divert part of your pre-tax salary to pay for certain eligible items such as contributions to your superannuation fund account.
The portion of pre-tax salary that an employee forgoes to access an alternative benefit from their employer such as additional superannuation contributions, a car, expense allowances, etc.
An arrangement between an employer and an employee which involves the employee giving up a part of his/her pre-tax salary in exchange for having the employer provide an alternative benefit, such as superannuation contributions.
An agreed arrangement between an employer and employee whereby the employee's gross salary is reduced by a certain amount, and the employer's contributions to the superannuation is increased by the same amount. Note that the amount of the salary sacrifice must be in addition to the normal contributions required to be made by the employer. This can be a very tax-effective way of saving for the employee, although it should be noted that the additional amount contributed to the superannuation fund will be subject to preservation.
Contributions Contributions made by you, to a complying superannuation fund, taken out of your pre-tax wages or salary.
This is an agreement between an employer and a worker. The employee gives up some of the wages they would have got in the future, and the employer pays the same amount as a contribution to a pension scheme. The Inland Revenue's rules say this agreement must be in writing. This does not count as an additional voluntary contribution . Salary sacrifice is sometimes called forgoing.
an amount of pre-tax salary that an employee decides to contribute to super or allocate to a fringe benefit instead of taking it as cash salary.
That part of the before-tax salary of an employee that is relinquished so that employers can make additional contributions to the employee's superannuation.
an amount of pre-tax salary that an employee decides to contribute to their superannuation or allocate fringe benefits instead of taking cash.
A written agreement between an employer and an employee for the employee to give up part of his/her earnings in return for an additional contribution by the employer to a Pension Scheme
A tax-effective arrangement in which your employer contributes to a super fund on your behalf instead of paying you the equivalent amount of gross salary.
The arrangement between an employer and an employee where the employee sacrifices pre-tax salary in exchange for having the employer provide an alternative benefit such as superannuation contributions.
An agreed arrangement between an employer and an employee whereby the employee agrees to sacrifice a part of their gross salary in exchange for a benefit, such as extra employer contributions to superannuation. Salary sacrifice contributions to superannuation are preserved.
A tax-efficient method of increasing the money paid into a pension scheme by giving up existing salary or proposed salary increases, so that the sum foregone can be used as an additional company contribution into a pension scheme.