Salary Sacrifice May Affect Superannuation And Some Government Benefits

It's important to understand the potential implications of entering into a salary sacrifice arrangement with your employer. The following may apply to you:

  • You pay a lesser amount of income tax on the reduced amount of salary or wages you receive
  • Your employer may be liable to pay fringe benefits tax on the non-cash benefits provided
  • Salary sacrificed super contributions are classified by your super fund as employer contributions rather than your own. This reduces the amount of superannuation guarantee contributions that your employer is required to make for you
  • Your employer may be required to report certain benefits on your payment summary. The value of these reported benefits is taken into account in assessing your eligibility for the Medicare levy surcharge, for some tax offsets, for child support payments, and for assessing entitlement to some government benefits.

Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.