How does the Salary Sacrifice event work?
Salary sacrifice sends part of your salary to super before tax. It lowers your taxable income and your take-home pay. Canwi taxes sacrificed pay at 15% in super, instead of income tax rates as high as 47%. Your employer still pays super guarantee on your full salary.
Use the Salary Sacrifice event to start, change or end a salary sacrifice arrangement from a particular year.
How to add the event
You can add it from the Planner or from the Money Flows page.
From the Planner
Click Add New Event at the top right of the Planner.
Filter for Investing & super events.
Drag and drop Salary Sacrifice onto a year in the plan.
Configure the event using the options below.
From the Money Flows page
Go to Plan > Money Flows.
Under Salary sacrifice, find the salary you want to change and click + Salary Sacrifice.
Configure the event using the options below.
If you already salary sacrifice today, click Edit salary to set your current arrangement. Use Salary Sacrifice events for changes from a later year.
Event settings
Which salary: choose the salary whose sacrifice changes from this year. Canwi shows the salary amount, and tells you if you don't salary sacrifice from it yet, so this event starts it.
Contribution type:
Fixed amount: stays the same every year.
Percentage of salary: grows with the salary.
Amount and Per: how much you sacrifice, and how often (for example, per year).
Where it goes: into the super fund that the salary pays super guarantee into.
The arrangement applies from the start of the event's year until a later Salary Sacrifice event changes it, or the job stops.
Your concessional contributions
Salary sacrifice is a concessional contribution, so it counts towards your concessional cap along with your employer's super guarantee and any other concessional contributions. The panel on the right shows this for the financial year:
what your employer pays
what you're salary sacrificing
the total
how much of the cap is left for other concessional contributions
Salary Sacrifice vs Contribute to Super
Both allow for put before-tax money into super. Salary Sacrifice changes the salary itself and runs year after year until you change it or the job stops. To model a once-off or recurring contribution that isn't tied to a salary, see How does the Contribute to Super event work?
FAQ
Does salary sacrifice reduce my employer's super guarantee?
No. Canwi assumes your employer still pays super guarantee on your full salary.
How do I change or stop salary sacrificing?
Add another Salary Sacrifice event in the year the arrangement changes or ends.
What happens if I stop working?
The arrangement ends when the job stops.
Can I set salary sacrifice to only contribute up to my concessional cap?
No - not for Salary Sacrifice. That matches how salary sacrifice works in real life. You tell your employer how much to send to super, as a dollar amount or a percentage of your pay, and they do it every pay.
If you want to contribute to super up to a specific cap (Concessional or Non-Concessional) use the Contribute to Super event.
Can I model salary sacrificing for a novated lease or a PBI (public benevolent institution) employer?
Not at the moment. The Salary Sacrifice event only covers salary sacrificed into super. Other types of salary packaging, such as a novated lease or the benefits some PBI employers offer, aren't supported yet.
Does salary sacrifice affect Division 293 tax?
Sacrificed pay counts as a concessional contribution, so it counts towards Division 293 income.