Untangl Salary Sacrifice presentation for Payroll World Spring Conference 19 March 2015
Increase super contributions by salary sacrifice (pre-tax) and save tax
-
Upload
australian-catholic-superannuation -
Category
Documents
-
view
227 -
download
0
Transcript of Increase super contributions by salary sacrifice (pre-tax) and save tax
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
1/27
SALARY SACRIFICE TO
SUPERANNUATION:
How salary sacrificecontributions can reduce
income tax and improve
super savings
Understanding the potential
of your super contributions using the
Australian Catholic Superannuation
Salary Sacrifice Calculator
1
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
2/27
DISCLAIMER
This presentation has been prepared by SCS Super Pty Ltd (ACN 064 712 607, AFSL23055, RSE L0002264), the trustee of the Australian Catholic Superannuation &Retirement Fund ABN 24 680 629 023, RSE R1055436.
Any advice contained in this presentation is of a general nature only, and does nottake into account your personal objectives, financial situation or needs. Prior toacting on any information in this document, you need to take into account yourown financial circumstances, consider the Product Disclosure Statement for anyproduct you are considering, and seek independent financial advice if you areunsure of what action to take.
The material contained in this presentation is based on information received ingood faith from sources within the market and on our understanding of thelegislation at this time.
2
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
3/27
3
SALARY SACRIFICE CALCULATOR
In this presentation well introduce the concept of salary
sacrifice to super and, using the example of Anne, show you how
the Australian Catholic Superannuation Salary Sacrifice
Calculatorcan help determine:
The impact of salary sacrifice (pre-tax) super contributions on your
take home pay1
How salary sacrifice can add to your overall super balance.
3
2
The impact of pre-tax superannuation contributions compared to
after-tax contributions
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
4/27
What are
salary sacrifice
superannuationcontributions?
4
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
5/27
5catholicsuper.com.au/calculators
Contributions that come out of your
pre-tax salary.
Additional to your employers 9.5%Superannuation Guarantee contribution.
Paid by your employer into your super accountinstead of being paid to you as salary.
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
6/27
What impact
do these
contributionshave?
6
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
7/27
7catholicsuper.com.au/calculators
Salary sacrifice superannuation contributions
could allow you to save tax by reducing your
taxable income.
Due to the power of compound interest, these
contributions can assist in boosting your final
retirement balance.
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
8/27
8catholicsuper.com.au/calculators
Salary sacrifice superannuation contributions
could allow you to save tax by reducing your
taxable income.
Due to the power of compound interest, these
contributions can assist in boosting your final
retirement balance.
Read more about tax and superannuation here!
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
9/27
MEET ANNE
catholicsuper.com.au/calculators 9
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
10/27
Anne (50) is a Primary
School Principal earning
$130,000 per year.
Anne heard that making regular
pre-tax contributions to her super
account could make a big difference
to her superannuation balanceandalso allow her to save tax.
catholicsuper.com.au/calculators 10
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
11/27
Anne believes she canafford to salary sacrifice
$325 per month into
superannuation.
This is equal to $3,900 per year or
approximately 3% of Annes salary -
added to her employer contributions
of 9.5%, Anne is contributing a total
of 12.5% of her salary to super.
catholicsuper.com.au/calculators 11
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
12/27
Anne used the Salary Sacrifice Calculator
to see how salary sacrifice may affect
her income and retirement savings.
catholicsuper.com.au/calculators 12
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
13/27
IMPACT 1: TAKE HOME PAY
The salary sacrifice calculator shows the impact that pre-tax
and after-tax contributions would have on her taxable income
and annual take home pay.
Annual salary
and tax details
After-tax
contributions
Salary sacrifice
(pre-tax)
contributions
Gross income $130,000 $130,000
Salary sacrifice contributions $0 -$3,900
Taxable income $130,000 $126,100
PAYG Tax $38,647 -$37,126
After-tax contributions -$3,900 $0
catholicsuper.com.au/calculators 13
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
14/27
IMPACT 1: TAKE HOME PAY
catholicsuper.com.au/calculators
Annual Salary
& Tax details
After-tax
contributions
Salary sacrifice
(pre-tax)
contributions
Gross income $130,000 $130,000
Salary sacrifice contributions $0 -$3,900
Taxable income $130,000 $126,100
PAYG Tax $38,647 -$37,126
After-tax contributions -$3,900 $0
Annual take home pay $87,453 $88,974
Compared to an after-tax contribution of the same value, a
$3,900 pre-tax contribution would reduce Annes taxable
income and increase her take-home pay by $1,521.
14
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
15/27
IMPACT 1: TAKE HOME PAY
catholicsuper.com.au/calculators
Annual Salary
& Tax details
After-tax
contributions
Salary sacrifice
(pre-tax)
contributions
Gross income
Salary sacrifice contributions
Taxable income
PAYG Tax
After-tax contributions
YOUR Annual take home pay $??,??? $??,???
Click here to try your situation in the calculator
15
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
16/27
IMPACT 2: SUPERANNUATION
16
Anne uses the calculator to see how pre-tax and after-tax
contributions will impact her superannuation contributions.
Annual Salary
& Tax details
After-tax
contributions
Salary sacrifice
(pre-tax)contributions
Employer SG contributions $12,350 $12,350
Salary sacrifice contributions $0 $3,900
Contributions Tax -$1,852.50 -$2,437.50
After-tax contributions $3,900 $0
Net Super Contributions $14,397.50 $13,812.50
Total Take home pay &
net super contributions$101,850.50 $102,786.50
catholicsuper.com.au/calculators
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
17/27
IMPACT 2: SUPERANNUATION
17
The calculator shows that Annes net super balance will be
higher with an after-tax contribution yet her overall
situation will be better if she makes a pre-tax contribution.
This is because of the way contributions are taxed:
Pre-tax contributions are taxed at 15% which,
in Anne's case, is less than her income tax rate.
After-tax contributions are taxed at a persons regular
income tax rate and are not subject to the
contributions tax.
catholicsuper.com.au/calculators
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
18/27
Annual Salary
& Tax details
After-tax
contributions
Salary sacrifice
(pre-tax)
contributions
Net Super Contributions $14,397.50 $13,812.50
Total Take home pay &
net super contributions$101,850.50 $102,786.50
IMPACT: TAKE HOME PAY & SUPER CONTRIBUTIONS
18catholicsuper.com.au/calculators
As Anne pays less tax overall, her total take-home pay and
super contributions are $936 more if she makes a pre-tax
contribution compared to an after-tax contribution.
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
19/27
Annual Salary
& Tax details
After-tax
contributions
Salary sacrifice
(pre-tax)
contributions
Net Super Contributions $14,397.50 $13,812.50
Total Take home pay &
net super contributions$101,850.50 $102,786.50
IMPACT: TAKE HOME PAY & SUPER CONTRIBUTIONS
19catholicsuper.com.au/calculators
As Anne pays less tax overall, her total take-home pay and
super contributions are $936 more if she makes a pre-tax
contribution compared to an after-tax contribution.
click here to try your situation in the calculator
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
20/27
You too may
be able to
save tax andgrow your
super throughsalary sacrifice
contributions.20
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
21/27
21
SALARY SACRIFICE AND YOUR SITUATION
Use the Australian Catholic Superannuation
Salary Sacrifice Calculatorto see how pre-tax and
after-tax super contributions:
Impact your take home pay
Impact your total yearly super contributions
Increase your super balance
Are subject to government contributions
catholicsuper.com.au/calculators
Try the calculator now, click here
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
22/27
22
How can I make
contributions
to my super?
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
23/27
23
MAKING PRE-TAX CONTRIBUTIONS
Contact your pay officeand ask them to deduct the
contributions from your regular pay.
You will need to specify the amount that you would like tocontribute per pay cycle.
catholicsuper.com.au/calculators
Click here for more information on
making contributions
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
24/27
MAKING AFTER-TAX CONTRIBUTIONS
Contact your pay office
and set up the contributions
to come out of your regular
after-tax pay.
Alternatively you can pay
directly to Australian
Catholic Superannuation viaBPay, direct debit, cheque
or EFTPOS.
24catholicsuper.com.au/calculators
Click here for moreinformation on
making contributions
Easily transfer funds
to your super
account with BPay
Biller Code 444232
Customer Reference no:
[Your account number]
http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/Superannuation/Managing_your_superannuation/How_to_contribute_to_superannuation/http://www.catholicsuper.com.au/calculators/salary_sacrifice/index.htmlhttp://www.catholicsuper.com.au/calculators/salary_sacrifice/index.html -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
25/27
-
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
26/27
26
CONNECT NOW
@AusCathSuper
Australian Catholic Superannuation
pinterest.com/AusCathSuper
https://twitter.com/AusCathSuperhttps://www.linkedin.com/company/australian-catholic-superannuation?trk=biz-companies-cyfhttp://www.pinterest.com/AusCathSuper/http://www.pinterest.com/AusCathSuper/http://www.pinterest.com/AusCathSuper/https://www.linkedin.com/company/australian-catholic-superannuation?trk=biz-companies-cyfhttps://www.linkedin.com/company/australian-catholic-superannuation?trk=biz-companies-cyfhttps://www.linkedin.com/company/australian-catholic-superannuation?trk=biz-companies-cyfhttps://www.linkedin.com/company/australian-catholic-superannuation?trk=biz-companies-cyfhttps://twitter.com/AusCathSuperhttp://www.pinterest.com/AusCathSuper/https://twitter.com/AusCathSuper -
8/11/2019 Increase super contributions by salary sacrifice (pre-tax) and save tax
27/27
27
CONTACT
T 1300 658 776
W www.catholicsuper.com.au
http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/http://www.catholicsuper.com.au/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/mailto:http://www.catholicsuper.com.au/mailto:[email protected]:http://www.catholicsuper.com.au/mailto:[email protected]:http://www.catholicsuper.com.au/http://www.catholicsuper.com.au/http://www.catholicsuper.com.au/Superannuation/What_is_superannuation/Tax___superannuation/