Skip to content
← Back to glossary

Salary sacrifice

An arrangement where you give up part of your pre-tax salary in exchange for a benefit (often super contributions or a novated car lease).

What newcomers get wrong

It's not always tax-effective. The benefit is taxed under different rules (FBT for cars, concessional rate for super). For low-to-mid earners and most temporary residents, the maths often doesn't work out — get advice before signing up.

Find a tax agent