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_suzita(Newbie)Newbie
22 June 2021

Hello everyone,

I have a few queries regards to the Salary Sacrifice :-

1) There is an employee has been given notice of redundancy. His exiting date will be on 1/7/2021.He also wanted to make a contribution up to max 25k for salary sacrifice in July-21 (which mean from his final payment includingnormal payments, annual leave, long service leave & severance pay).Can he proceed to transfer all his money for salary sacrifice?.

2) Can employee make salary sacrifice into Super after tax?

Regards,

SS

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696 views
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Most helpful reply

EthanATO(Community Support)Community Support
22 June 2021

Hi @suzita,

To answer your questions:

    • We've answered a question similar to this on a previous thread that should help. That link explains whether an employee can create a salary sacrifice arrangement for a termination payment. Short answer is no they can't, but that link will explain more.
    • Salary sacrifice amounts are made before tax. Employees can't make contributions under a salary sacrifice arrangement after the amount has been paid to them. Any contributions made this way will count as a personal contribution.

    Hope this helps, let us know if you have any questions.

    All replies

    Most helpful reply

    EthanATO(Community Support)Community Support
    22 June 2021

    Hi @suzita,

    To answer your questions:

      • We've answered a question similar to this on a previous thread that should help. That link explains whether an employee can create a salary sacrifice arrangement for a termination payment. Short answer is no they can't, but that link will explain more.
      • Salary sacrifice amounts are made before tax. Employees can't make contributions under a salary sacrifice arrangement after the amount has been paid to them. Any contributions made this way will count as a personal contribution.

      Hope this helps, let us know if you have any questions.

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