Tax tips
Generally, you pay much less tax on your super than you do on your salary. If you are over 60, payments from your super are tax free.
Make your tax return simpler
Unlike other investments you may have, you do not have to put your super earnings on your tax return.
Salary sacrifice and you could save on tax
If you contribute to super from your before tax salary, you reduce the income on which you pay income tax. Contributions to super attract a contributions tax of 15%, a lower tax rate than many people pay on their income.
Before you enter a salary sacrifice arrangement with your employer, you should check that it does not breach any award or other industrial agreement that applies.
Confirm with your employer that other employment entitlements (such as annual leave and long service leave) will not be reduced as a result of the salary sacrifice arrangement.
Also check that your employer will continue to make the same super contributions for you as on your pre-salary sacrifice earnings.
Consider seeking financial advice before contributing to super via salary sacrifice.
Tax is complex – talk to a professional adviser
Getting good financial advice could be one of the best decisions you make. A licensed financial adviser can provide personal advice that best fits your circumstances and needs.
TWUSUPER provides you access to affordable financial advice when you need it.
Find out more about how you can access financial advice.
Provide your Tax File Number – avoid paying more tax than you have to
You do not have to give TWUSUPER your Tax File Number (TFN), but if you do not you will pay an additional 31.5% contributions tax on concessional contributions to your account (these include employer contributions and salary sacrifice contributions).
We will also be unable to accept voluntary contributions if we do not have your TFN.
Advise your TFN today. Download Tax File Number notification form.