Can I get my employer to make larger salary sacrifice contributions into superannuation over 6 months until I reach the $30,000 cap, then cease the arrangement and stop work and retire?
I am considering retiring mid financial year and am over 60.
Hi @Betty26,
Yes, a salary sacrifice arrangement can be increased, changed or stopped part‑way through a financial year if your employer agrees.
All salary sacrifice amounts (together with employer super guarantee) count towards your annual concessional cap and are counted in the year they’re paid to the fund, not evenly over the year. You don’t have to work the full year to use the cap.
Before doing this, you should:
Because this depends on your employer’s payroll processes and your total contributions for the year, you may want to confirm the details before setting it up or retiring.
G'day @Betty26 👋
You can ask, but because a salary sacrifice arrangement is voluntary, your employer doesn't have to agree. Furthermore, only OTE/QE is capped at the MCB (that aligns to the concessional cap amount), your employer may have additional industrial super obligations that aren't capped, resulting in contributions in excess of the concessional caps.
Refer to the ATO guidance on options to grow your super 😉
Deanne
thanks Deanne
Hi @Betty26,
Yes, a salary sacrifice arrangement can be increased, changed or stopped part‑way through a financial year if your employer agrees.
All salary sacrifice amounts (together with employer super guarantee) count towards your annual concessional cap and are counted in the year they’re paid to the fund, not evenly over the year. You don’t have to work the full year to use the cap.
Before doing this, you should:
Because this depends on your employer’s payroll processes and your total contributions for the year, you may want to confirm the details before setting it up or retiring.
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