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Salary sacrifice

What are salary sacrifice contributions?

Salary sacrifice contributions are contributions from your pre-tax salary that you can voluntarily make in addition to your regular contributions to DFRDB. Those contributions cannot be made instead of your regular DFRDB contributions. As these are organised through Defence you will need to contact your Pay Unit in order to start or stop salary sacrifice deductions.

There is also a limit on the amount of deductible contributions you can pay into your superannuation without incurring additional tax. Deductible contributions include salary sacrifice amounts and employer contributions on which the employer is able to claim a tax deduction.

The limit across all your superannuation funds is:

  • maximum $50,000 per year

    or

  • a transitional limit of $100,000 per year for five years (2007-08 to 2011-12) for Members over age 50 on or after 1 July 2007.

Deductible contributions above the caps will be taxed at the top marginal tax rate (plus the Medicare levy). Deductible contributions above the deductible contributions caps will be counted towards your undeducted contributions cap.

15% tax is deducted from these contributions on receipt in the DFRDB Fund.

Forms and Fact Sheets

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