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Creating effective salary-sacrifice arrangements with your employees

Allowing your employees to sacrifice some of their salary and wages into their super account on top of your Superannuation Guarantee (SG) contributions can help them manage their tax bill, increase their retirement savings and boost their engagement with your business.

However, there are important rules you must follow if you want to create an effective salary-sacrifice arrangement that passes muster with the Australian Taxation Office (ATO).

Here’s a simple explainer of what you need to know.

What is salary sacrifice?

A salary-sacrifice arrangement is a pre-tax payment made from an employee’s salary or wages that can provide them with valuable tax advantages.

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