Reap instant rewards
Salary sacrificing is a fantastic way to reduce your taxable income. And reducing your taxable income means paying less tax, which is something we would all like to do. The problem with salary sacrificing is that you need to arrange it BEFORE you earn the salary. Once that money is in your bank account, it's too late!
The earlier in the year that you put salary sacrifice arrangements in place, you'll benefit from a longer term of reduced taxable income for the next financial year.
If you're fortunate enough to be in line for a bonus, you may be able to put the full amount into your super account where it will be taxed at a much lower rate instead of seeing it taxed along with the rest of your salary.
Yes, there are many things you could spend your after-tax bonus on. But by far the smartest thing to do is use it to give your super a boost. Speak to your financial adviser who can provide you with some compelling arguments for salary sacrificing to super.
The key to your financial future is a series of small, sensible steps. The general advice provided here doesn't take into account your personal objectives, financial situation or needs and because of that, the very first step is to speak to your financial adviser. Your financial adviser can take you through all of these strategies and many more besides. They know your personal financial situation and are perfectly placed to pick out the strategies that are going to work for you, and then help you implement them.
For more information, please read salary sacrificing
If you'd like more information, talk to your financial adviser. If you don't have an adviser, we can help you find one.