Should I salary sacrifice or make a personal deductible contribution?

Both are concessional contributions — they share the same $30,000 annual cap, are taxed at 15% in super, and reduce your taxable income by the same dollar amount. The tax outcome is usually identical. The difference is mechanical.

Salary sacrifice

• You agree with your employer to redirect part of your pre-tax salary into super
• The employer processes it as a super contribution, not wages — no PAYG tax withheld on the sacrificed portion
• Appears on your end-of-year payment summary as “reportable employer super contributions”

Risk: Employer must actually set it up. Some small employers still handle this badly. The SG base is legally your ordinary wage, not post-sacrifice wage — but check your payslip.

Personal deductible contribution

• You contribute post-tax money directly to your super fund
• You lodge a Notice of Intent to Claim a Tax Deduction (NAT 71121) with your fund
• Fund acknowledges in writing
• You claim the deduction when you lodge your tax return — refund flows at assessment time

Risk: If you forget the Notice of Intent, or the fund doesn't acknowledge, you lose the deduction entirely.

When personal deductible is actually better

• You had a windfall (bonus, inheritance, asset sale) and want to contribute a lump sum
• Your employer won't set up salary sacrifice
• You're self-employed or a sole trader — salary sacrifice doesn't apply
• You want to decide at tax time based on your actual taxable income

When salary sacrifice wins

• You want regular, automatic contributions you don't have to remember
• Cash flow smoothing — smaller regular deductions vs a lump-sum tax refund
• You want to max the cap without the Notice of Intent admin