Key Takeaway: Super contributions are taxed at just 15% vs up to 45% marginal rate. Salary sacrifice is the ultimate tax hack for Australians.
How Super Works
1. Employer contributes 12% of salary (Super Guarantee) 2. Money goes into your chosen super fund 3. Fund invests it in shares, property, bonds 4. Grows with compound interest till retirement 5. After 60, withdraw completely tax-free
The 15% Tax Advantage
Super contributions taxed at flat 15%: • $80K salary → Save 17.5% vs marginal rate • $120K salary → Save 22% vs marginal rate • $180K+ salary → Save 30% vs marginal rate
Salary Sacrifice
Extra $10K via salary sacrifice at $100K salary: • Without: $10K taxed at 32.5% = $6,750 in pocket • With: $10K taxed at 15% = $8,500 in super • You save $1,750 in tax AND boost retirement!
Super Balance Targets by Age
• Age 25: $25,000 • Age 30: $70,000 • Age 35: $130,000 • Age 40: $210,000 • Age 50: $460,000 • Age 60: $690,000+