Have you heard about the salary sacrificing loopholes that can adversely affect your retirement savings plans? Under current laws, employees who sacrifice some of their salary in return for additional super contributions may end up receiving less than they expected because of these two legal loopholes: Employers may choose to count the salary sacrifice contributions they make towards satisfying their obligation to make minimum compulsory super guarantee (SG) contributions of 9.5%. Also, employers may calculate their 9.5% contributions liability based on the employee’s reduced salary after deducting sacrificed amounts, rather than the pre-sacrifice salary. The following example demonstrates how … Continue reading Salary sacrificing loopholes: are you receiving your full benefits?