Superannuation Contributions and Salary Sacrifice

From 1 July 2017, there are significant changes to how you can claim Superannuation contributions . – when you are on wages.

Prior to 1 July, 2017 if you were on wages and your employer was paying the Compulsory Superannuation Contribution on your wages, the only way for an employee to contribute more AND gain a tax benefit, was through Salary Sacrifice.

Now, employees are able to make personal contributions and be able to claim a tax deduction for the additional amount they contribute. This is limited by the Superannuation Cap of $25,000 per year (current cap). Note that the Superannuation Cap is inclusive of your employer’s Compulsory Contribution.

As an explanation:

  • Gross wages from employer                                                                                       50,000
  • Employer Compulsory Superannuation contribution @ 9.5%                        4,750
  • Superannuation Contribution cap                                                                             25,000
  • Balance available as a personal tax deductible contribution                          20,250


The personal contribution can be made as a regular contribution or as a lump sum, at any point during the financial year. Only the contributions received by your Superfund BEFORE 30 June of year, can be claimed as a tax deduction.