Superannuation - Do you salary sacrifice?

Do you salary sacrifice into your superannuation*?

*Compulsory Australian Retirement Fund

I recently upped my superannuation salary sacrifice from 10% to 15%, while this would normally affect the take-home amount, I also turned on the tax-free threshold, which offset the reduction. I had forgotten that it wasn't on as when I initially started this role, I had two jobs and you can't have it ticked for both.

Regardless, salary sacrificing is beneficial in many ways. Firstly, it can help you save more money for your retirement. As superannuation is a long-term investment, the earlier you start contributing, the more time your money has to grow. Therefore, increasing your contributions can help you achieve a comfortable retirement.

Secondly, increasing your superannuation salary sacrifice can also reduce your taxable income. Superannuation contributions are taxed at a lower rate than your income tax rate, so the more you contribute, the more you can potentially save on taxes.

Thirdly, increasing your superannuation contributions can also help you reach your retirement goals faster. With a higher rate of contributions, you can accumulate a larger amount of money in your superannuation account, which can translate into a more comfortable retirement.

Overall, increasing your superannuation salary sacrifice by any amount can bring significant benefits for your financial future, helping you achieve your retirement goals, reduce your taxes and provide peace of mind. However, it is important to seek professional advice before making any significant financial decisions.