Salary sacrifice is a tax effective way to increase your superannuation balance. In essence it involves voluntarily sacrificing some of your salary into your superannuation account.
It is very simple to implement; you simply notify your employer that you wish to salary sacrifice x% or $x of your future salary into super and make a salary sacrifice agreement to that effect. There are however some potential negatives to salary sacrificing and things to be mindful of which are listed at the end of this article. (more…)