Salary sacrifice is an arrangement between you and your employer where you consent to reduce your salary by a nominated amount and your employer uses this amount to increase your super contributions before income tax is paid.

If your workplace allows you to salary sacrifice into super, check that your entitlements such as SG contributions (on top of your sacrificed amount), holiday loadings and shift allowances will be calculated on your full salary (before salary sacrifice).

To avoid misunderstandings, it's best to get all your agreements in writing, including your full and adjusted salary and how your entitlements will be calculated. If you work under an Industrial Award or Agreement, you need to ensure that any specified requirements are met. For example, you can't salary sacrifice so much that your salary falls below the Award rate.