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Salary Sacrifice

Salary Sacrifice is a phrase used to describe making a pre-tax contributions to another party.  In the case of Superannuation, you can arrange for you’re employer to make extra contributions to your super fund before paying tax on that money.  The benefit is, contributions to your super up and till $25k is only taxed at 15% versus being paid the money in your salary where you maybe taxed at 32.5% or more.

Salary definition – regular monetarily payment for work.

Sacrifice definition – slaughtering of animals for religious purposes.

 

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