Grow your retirement wealth

1. Salary sacrifice

Salary sacrifice is where you ask your employer to pay an extra amount from your regular salary towards your super. This is known as a ‘before-tax’ contribution.

This is on top of the mandatory 11.5% superannuation your employer already pays.

The benefits:

• You are reducing your taxable income, which means you could pay less tax
• Your salary sacrificed contribution and investment earnings are taxed at a lower rate than money held outside super. Most people pay between 30-49% personal income tax, while super is taxed at 15%
• Set and forget: because it comes straight out of your pay, it takes the legwork out of having to save yourself.

How to set this up:

 Fill out the Contribution form (PDF)  and return it to us by email or post.

Contact your employer to ask them to set up salary sacrifice contributions. Use our handy email template below to notify your employer.

Member Contribution form

2. After-tax contributions

An after-tax contribution is where you pay money into your super from your bank account, savings or lump sums such as a tax return. You have already paid tax on this money.

The benefits:

• Useful if you want to pay one-off amounts into your super
• You can contribute larger amounts – the annual limit is $120,000, but you can also bring forward up to three years of after-tax contributions. Rules apply.
• Investment earnings are taxed at a lower rate in your super than money saved outside super
• You may also be able to claim a tax deduction for this type of contribution

How to set this up:

Fill out the  Contribution form (PDF) and return it to us by email or post.

Make a payment via BPAY. Simply log into your firstonline account or the mobile app. Navigate to ‘Make a contribution’ where you will find our BPAY biller code and your unique Customer Reference Number.

Log into firstonline

Example email template

Subject: Salary sacrifice

Hi [First name],

Re: Salary Sacrifice

Please deduct [Enter $ amount / amount %] per month from my salary and send it to First Super (ABN 56 286 625 181, Unique Superannuation Identifier (USI) FIS0001AU).

I understand that this does not affect the money you contribute as my employer for the Super Guarantee, my remuneration package or any insurance.

Regards,

[Your name]

Isabella starts adding salary sacrifice contributions early

• Isabella and Emily are both aged 21.
• Both are earning $62,098 a year and start contributing 11.5% to their super through their employer’s compulsory super payments (known as the Superannuation Guarantee).
• Through her employer, Isabella initially decides to add an extra $50 each pay (monthly) to her super, which increases by 2.5% each year in line with her wages, until she retires at age 65.
• Emily continues to contribute 11.5% to her super each year with no extra contributions.
• Isabella will retire with a balance of $1,524,685, over $100,000 more than Emily, who will retire with a balance of $1,410,912.

Ben boosts his super with salary sacrifice contributions and saves on

Ben and Luke are both aged 30.

• Both are earning $83,200 a year and contribute 11.5% to their super through their employer and the Superannuation Guarantee (SG). They both have a super balance of $50,000.
• Through his employer, Ben initially decides to add an extra $150 each pay (monthly) to his super, which increases by 2.5% each year in line with his wages, until he retires at age 65.
• Luke continues to contribute 11.5% to his super each year with no extra contributions.
• Ben will retire with a balance of $1,527,249, over $190,000 more than Luke, who will retire with $1,334,259.
• Ben will also save $306 more in tax in the first year, compared to Luke.