Suppose someone is 24 years old within Australia. He works and his income puts him in the 30% duty bracket. He wants to stipend sacrifice so that he can minimize tax.
Is it surrounded by theory possible to gross sacrifice into superannuation so that taxable income is zero? That is, can the 24-year-old pay sacrifice his whole income? Is that possible or is at hand a limit to how much he can take-home pay sacrifice?
Answers: I understand it depends on the awards and/or the agreements that the hand is on. Some apparently say no. But that aside - yes you can. Generally what you obligation to be aware of, strictly speaking, the employer can also legally escape from the 9% super responsibility if the employee pay sacrifices 100% of his gross take-home pay (excluding super). I vaguely retract before the May 08 budget this be going to be amended - I don't think it have - but others can correct me on that. Also, generally workers do not salary sacrifice more than the bottom threshold of 15% marginal levy bracket. As the contribution into super is also taxed at 15%.
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Is it surrounded by theory possible to gross sacrifice into superannuation so that taxable income is zero? That is, can the 24-year-old pay sacrifice his whole income? Is that possible or is at hand a limit to how much he can take-home pay sacrifice?
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Answers: I understand it depends on the awards and/or the agreements that the hand is on. Some apparently say no. But that aside - yes you can. Generally what you obligation to be aware of, strictly speaking, the employer can also legally escape from the 9% super responsibility if the employee pay sacrifices 100% of his gross take-home pay (excluding super). I vaguely retract before the May 08 budget this be going to be amended - I don't think it have - but others can correct me on that. Also, generally workers do not salary sacrifice more than the bottom threshold of 15% marginal levy bracket. As the contribution into super is also taxed at 15%.
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