Tax with Max: Weighing up salary sacrifice

Making sacrifices early, going back to work after retirement and passing Centrelink’s assets test.

Summary: A salary sacrifice strategy has the greatest overall benefit for those on the highest marginal tax rate, but even someone on the lowest tax rate benefits from doing this. Although savers have to wait until retirement to benefit, the strategy is flexible and can be stopped in cases of financial hardship.

Key take-out: Over a period of 40 years, the pain of foregoing about three big Mac meals a week allows a saver to earn about an extra $156 a week in retirement.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles