CASE STUDY: HOW MICHELLE AND NICK WOULD BENEFIT
Michelle earns $60,000 a year and wants to buy her first home. Using salary sacrifice, she annually directs $10,000 of pre-tax income into her superannuation account, increasing her balance by $8500 after the contributions tax of 15% has been paid by her fund.
After three years she is able to withdraw $27,380 of contributions and deemed earnings on those contributions. Her withdrawal is taxed at her marginal rate (including Medicare levy) less a 30% offset. After paying $1620 of withdrawal tax she has $25,760 that she can use for her deposit.
Michelle has saved around $6240 more for a deposit through the government's scheme than if she had saved in a standard deposit account.
Michelle's partner Nick has the same income and also salary sacrifices $10,000 annually to superannuation over the same period. Together they have $51,520 that they can put towards a deposit, $12,480 more than if they had saved in a standard deposit account.