What is salary sacrifice?

Salary sacrifice is the portion of pre-tax salary that an employee gives up in exchange for the employer making additional super contributions on their behalf.
Because your super contributions are taxed at only 15%* by the super fund – as opposed to your marginal tax rate of up to 46.5% (including the Medicare Levy) – more of your money can be invested than if you took this money as cash.
*The Government has announced that individuals earning more than $300,000 will incur a contributions tax of 30%. 
On top of this, the portion of your salary put into super does not count as assessable income, potentially reducing your tax bill.