Give your super a boost

Salary sacrifice

Here’s a smart step you can take right now to set yourself up for an even stronger financial future. It’s called salary sacrifice, and here’s how it works.

As an example, say you earn between $80,000 and $180,000 and you decide to set aside an amount of money as a salary sacrifice (that is, before you take it home as normal pay). Because of the way tax works, reducing your (after-tax) take-home pay by $100 will result in $139.40# being invested in your super fund. So if you choose to salary sacrifice this amount regularly, you’ve just increased the amount working for you by $39.40 with every pay packet#.

Over 20 years of contributions, this could mean an extra $255,738* in the future.

How does salary sacrificing work?

If you earn between $80,000 and $180,000 a year, you pay 39% income tax. But your super fund pays tax at a special rate of only 15%, so by sacrificing income for additional super contributions you have more money working for you without you doing anything extra. Even if you earn less than $80,000, you can still grow your super faster.

Look forward by adding to your super sooner rather than later

Super grows because over time you earn interest on interest. By starting early, you’ll be making the most of the opportunities to grow your super, and will thank yourself down the track.

How to set up salary sacrifice?

Qantas employees can set up salary sacrificing by completing an online form on The Terminal. Before filling out the form, make sure you know your pay group – this can be found on your payslip.

If you have difficulty accessing or filling in the form, please speak to People Services on 1300 303 411.

Remember that caps apply, your super will be preserved until you reach retirement age, and it’s important to think about your ongoing commitments. Here’s what we’ve assumed in putting together this example. # This assumes a marginal tax rate of 39% on your personal income. * The projected outcome shown in the above case study assumes that weekly contributions of $163.93 are made for 20 years (from age 45 to retirement age 65) and earn a rate of return of 6.6% p.a. paid in arrears. The amount is not a prediction of actual returns, which are likely to vary over time, and actual dollar values are used with no adjustment for the effect of inflation. Differences in returns (which may be positive or negative), and fees will alter the outcome. This example also assumes concessional contribution caps have not been exceeded. Current at 1 July 2017. The example shown may not apply to your own situation, so we recommend that you consider your options carefully and seek financial advice about salary sacrifice. Salary sacrifice arrangements are subject to employer approval. Past performance should not be relied upon as an indicator of future performance.

If you’ve got 2 jobs, we’ve now got 1 super solution

If you’re a Qantas employee and you have a second job, you can now have your superannuation from your employer paid directly into your Qantas Super account. Get the confidence of one super account and save on fees.

It’s easy. Simply:

  1. Fill out your details in this form (best on desktop/laptop)
  2. Print the form and sign (section 5)
  3. Give the signed form to your other employer to process through their payroll

The last page of the form is a letter of compliance your employer may need to process your request.

If you have any questions, feel free to call us on 1300 362 967.

Types of contributions

Concessional (before-tax) contributions

Employer contributions and any personal contributions made from before-tax salary. To learn about the contributions rules specific to your division, read the relevant fact sheet for you.

Non-concessional (after-tax) contributions

Contributions made from after-tax salary where a tax deduction is not claimed, such as personal and spouse contributions. You or your spouse can make contributions from after-tax monies.

Government co-contribution

The Government has a scheme to help people on low to middle incomes save for their retirement. If you’re a low or middle income earner the Government will contribute extra money to your account (up to $500 annually) to your account if you contribute your own money after-tax and meet certain rules.

Low income super contribution

The Government will make a contribution (up to $500 annually) of 15% of eligible concessional contributions (including employer contributions) made up to and including 30 June 2017, by or for individuals with an adjusted taxable income of up to $37,000.

Contribution caps

The Government has set limits, called contribution caps, on the amount of concessional and non concessional contributions you can make into super. If you exceed these limits you may need to pay additional tax. For more information about caps call our Helpline.