Putting your money into the super system is one of the most tax effective ways of investing. So it’s important to think about making additional payments to your super account – a few dollars today can mean a lot more when you’re ready to take that holiday you’ve dreamed of in retirement.

Salary sacrifice. Give your super a regular boost.

How it works

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.

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.

Start early to unlock the beauty of interest

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.

Small change. Big difference.

$128,208

One less $3.80 coffee a day

$48,033

One less $10 glass of wine a week

$38,796

One less $36 dinner out a month

These examples are for a 30-year-old retiring at age 65 with super invested in a moderate investment option. All figures in future dollars. Contributions: Savings are assumed to be added as regular, after-tax monthly contributions into a savings account. Any contribution limits relating to a specific savings account are ignored. The calculator assumes all contributions can be saved without additional tax or fees. Investment returns: Investment returns are assumed to be consistent for the duration of the savings period. Items: The costs of the everyday items are estimates and do not necessarily represent the exact cost to you if you were to give up the item, at the specified frequency, as represented in the calculator. The cost of each everyday item shown in the calculator is assumed to remain the same for the duration of the savings period. The effects of inflation on the cost of the item are ignored meaning the increase in savings is shown in today’s terms. Investment period: When calculating how much extra you could save, it is assumed your investment period ends at age 65. Source: Small changes calculator, The Association of Superannuation Funds of Australia Ltd (ASFA), www.superguru.com.au, November 2017. Disclaimer: This is a model, not a prediction. It only gives you estimates of the amount that will be saved on the basis of given assumptions. We cannot predict certain things that will affect your decision to save or eventual outcomes, such as movements in interest rates. It is not intended to be your sole source of information when making a financial decision. You should consider whether it is appropriate for you to get advice from a licensed financial adviser.

Got two jobs? You don't need two super accounts.

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.

Give us a call if you get stuck.

One-off contributions to super

If salary sacrifice is too much of a committment, you might prefer to make a one off payment to your super account. All you need to do is log into your account and follow the prompts to make a contributions via BPAY.

Don't get caught out by contribution caps

The Government has set limits, called contribution caps, on the amount of concessional (before tax) and non concessional contributions (after tax) you can make into super. If you exceed these limits you may need to pay additional tax.

If you make additional contributions to super make sure you’re not exceeding the Government limits by giving our helpline a call.

Types of contributions

  • Concessional (before-tax) contributions

    The contributions your employer makes and any personal contributions made from before-tax salary. There are specific rules for your division about concessional contributions. To make things easier for you, we’ve created a fact sheet on contributing to super for your division that explains these rules.

    You can make concessional contributions by setting up a salary sacrifice with your employer. If you’re a Qantas employee, all you need to do is fill in this Terminal form.

    Remember, the Government sets limits on how much you contribute to super. Call us if you’d like to check what limits apply to you and how close you are to reaching those limits.

  • Non-concessional (after-tax) contributions

    These are 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.

    You can make non-concessional contributions as a regular salary sacrifice with your employer or via BPAY as a one-off contribution. Log into your account to get your BPAY biller code and reference number.

    Remember, the Government sets limits on how much you contribute to super. Call us if you’d like to check what limits apply to you and how close you are to reaching those limits.

  • Government co-contribution

    The Government has a scheme to help people on low to middle incomes save for their retirement. If you earn less than $50,4541 in the 2015/2016 financial year and you make a non-concessional (after-tax) contribution to your super, you might be eligible to receive a co-contribution from the Government of up to $500, which is paid into your super account.

    1 Total income is your assessable income plus reportable fringe benefits and reportable employer super contributions.

  • Low income super tax offset

    If you have a taxable income up to $37,000 you will receive a refund of the tax paid on your concessional (before tax) contributions, up to a cap of $500.

    The tax office determines whether you’re eligble for the offset. If you are eligble the offset will be paid automatically into your super account – you don’t need to do anything.

    For example: In the 2017-18 financial year Katherine worked part‑time as a Flight Attendant and earned $35,000. Qantas made super contributions of $3,325 on her behalf. Katherine is eligible for the Low Income Superannuation Tax Offset and receives $498.75 , paid into her super account.