Salary Sacrifice

Salary sacrifice is a contractual agreement between an employee and their employer. The employee agrees to give up part of their future salary or wages, and in return their employer provides benefits of a similar value.

Further Reading: For more information, see the ATO publication Employee’s guide to salary sacrificing for superannuation.

Employees can sacrifice salaries or wages for a range of benefits. For example:

• Superannuation
• Car fringe benefits
• Expense payment fringe benefits
• School fees
• Child care costs
• Loan payments.

This manual explains salary sacrifice for superannuation.

Topic: 14164