Contributing to Super

Salary Sacrifice

Salary Sacrifice is an arrangement between the employer and the employee where the employee elects to forego part of their salary in return for contributions being made to the Plan.

When salary sacrifice contributions are made, the employees salary is reduced by the amount being sacrificed. This will lead to a reduction in after-tax salary. The salary sacrifice amount is then paid to the superannuation plan as an employee contribution to the employee’s superannuation account. This contribution is treated as an employer contribution for tax purposes (see below).

Making salary sacrifice contributions does not effect your superannuation salary.

From 1 July 2007, salary sacrifice contributions will be known as concessional contributions. There is a limit on the amount of concessional contributions that can be made for you each year. These are described in the Contribution Limits page.

Tax on salary sacrifice contributions

Salary sacrifice contributions are taxed as an employer contribution (or concessional contribution), which is currently 15% of the contribution. This contributions tax will be deducted from your salary sacrifice contributions before they are credited to your account.

For more information on tax refer to the tax on super page

Spouse contributions

Some employers and funds allow salary sacrifice contributions to be made on behalf of the member’s spouse. Your employer in the Qantas Group and Qantas Superannuation Plan does not allow salary sacrifice contributions to be made to spouse accounts.

Commencing voluntary salary sacrifice contributions

Salary Sacrifice is voluntary and members of the Qantas Superannuation Plan (except Division 8, 9 and 11 members) are eligible to make salary sacrifice contributions.

To start making salary sacrifice contributions (or to vary existing rates of salary sacrifice contributions), members must complete a Voluntary Contribution Advice Form - Regular Contributions and return it to the Plan. Members can select a percentage of their superannuation salary or a dollar figure. Once the completed form is received, the salary sacrifice contribution will commence on the next available pay run.

For members in Division 5 and 6, all salary sacrifice contributions (including the superannuation guarantee contribution) are credited to the Salary Sacrifice Account.