What’s the difference between salary sacrifice and after tax contributions?
Answer
Salary sacrifice is an agreement that you make with your employer to use your before tax salary. This means that your total salary for tax purposes (taxable income) and the amount of Pay As You Go (PAYG) tax you pay is lower because some of your salary is being paid straight into super rather than being taxed as income. For more information, see Make contributions.
After tax contributions are payments that you make into your super after your tax has been deducted from your salary. If you make after tax contributions you may also be eligible for the Federal Government’s co-contributions. For more information about the co-contribution, see Federal Government co-contribution. For more information about after tax contributions, see Make Contributions.
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