Paying taxes is unavoidable, but there are ways to make your money work harder for you by salary sacrificing into super.
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Paying tax is one of those unavoidable parts of adult life. Necessary? Yes. Painful? Also yes.
Especially when you look at your payslip and realise just how much of your hard-earned money never actually makes it into your account.
But what if there was a way to legally reduce how much tax you pay… while putting more money to work for your future?
And this isn’t a loophole… or illegal. It’s called salary sacrificing.
How effective it is depends on your personal situation, including how much you earn, how much you already contribute to super, and when you’ll be able to access that money.
As of the 30 June 2026 in Australia, most employers are required to make 12% super guarantee (SG) contributions to your super fund.
But that’s just the minimum. You can actually put more money into your preferred super fund (with conditions, which are explained more below), and the government encourages investors to do this by offering some pretty sweet tax benefits.
On top of the super guarantee (which already happens by law) you can also choose to salary sacrifice.
Salary sacrifice is where your employer can contribute an extra portion of your before-tax salary straight into your super if you choose to set this up.
For some people, salary sacrificing can be a simple way to put a bit more of their income to work for the future. Depending on your circumstances, directing part of your income into super before tax may mean more of it is invested rather than taken as take‑home pay.
Best part is, it’s pretty easy to set up. The payroll team at your workplace should already have a process in place to help employees salary sacrifice - so just send them a message to get the ball rolling.
Belinda earns $70,000 a year. After reviewing her budget, she realised she could afford to set some money aside. She set the goal of saving $10,000 per year for her long term future.
At Belinda’s salary, she would have an income tax around 32%. If she chose to invest outside of super, she would have about $6,800 to invest after taxes.
But if the same $10,000 gets invested via salary sacrifice, things start to get interesting. Investments in super are generally taxed at only 15% (conditions explained later in the article) which means she gets to invest $8,500 instead.
That’s about $1,700 more upfront due to super being a tax favourable environment.
Salary sacrificed money isn’t exactly instant cash-in-hand. That extra money needs to go into your super…so you won’t be able to touch it until you hit retirement age (or meet another condition of release).
Also, the tax benefits aren’t unlimited. As of the 30 June 2026, only $30,000 of your super every year can be taxed at the lower rate of 15% - and that includes the SG your employer has made on your behalf.
But if you’re okay with that trade-off, salary sacrifice might just be your new favourite money move.
Here’s the wild part: even with all the tax benefits, most Australians don’t salary sacrifice. In fact, in the last financial year, Aussies contributed about $9.1 billion via salary sacrifice vs $120 billion from employer super
It’s one of those simple money moves that everyone talks about… but very few actually do.
Netwealth’s Super Accelerator isn’t just another super fund - it’s a way to make your salary sacrifice contributions work the way you want. With more flexibility than other super funds, it lets you decide how your extra contributions are invested, while comparison tools help you make choices that suit your goals and style.
So whether you’re boosting your balance through salary sacrifice or simply want more investment options for your regular contributions, Super Accelerator helps you grow your balance steadily while giving you the power to directly manage your investments or use automated set and forget strategies.
Remember, salary sacrifice isn’t about working harder, it’s about working smarter - letting automation and tax efficiency do the heavy lifting for your future self.
Flux disclaimer: The Information contained in this article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual’s circumstances. You should consider your own personal circumstances and seek advice from your professional advisers before making any decisions that may impact your financial situation.
Netwealth disclaimer: Netwealth Superannuation Services Pty Ltd issues Netwealth Super Accelerator. Netwealth Investments Limited issues the Netwealth Wealth Accelerator Multi-Asset Portfolio Service. Information contained within this post is of general nature only. Consider whether the products are appropriate for you and seek advice where required. To help you decide, read the PDS or IDPS Guide and TMD available at netwealth - Super & Investment Solutions - Investors & Wealth Professionals.
The Information contained in this article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual’s circumstances. You should consider your own personal circumstances and seek advice from your professional advisers before making any decisions that may impact your financial situation.
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