The major benefits of salary packaging into superannuation are:

- No fringe benefits tax is payable by the employer on employee superannuation contributions.

- The employer is generally entitled to claim a full tax deduction for all superannuation contributions made on behalf of employees.

- Contributions into the fund are taxed at only 15% instead of higher marginal rates. 

For the 2010/11 year, the maximum concessional superannuation contributions that can be claimed by the employer on behalf of employees is as follows:

Employee below 50 years of age at 30 June:                       $25,000 (indexed)

Employee aged 50 and over at 30 June:                              $50,000 (unindexed) *

* This is a transitional measure that applies up to the 2011/12 year, upon which the limit will reduce to the standard $25,000 indexed amount. The Government has announced that from 1 July 2012, individuals aged 50 or over with superannuation balances below $500,000 will continue to be able to make concessional superannuation contributions of up to $50,000. 

Note that contributions above these limits can still be claimed as a full deduction, but will be taxed to the member at an overall effective rate of 46.5%. Super guarantee contributions are included in these limits.

Complete the two fields below and then click on the "calculate" button to work out the increase in disposable income by salary sacrificing into superannuation.