What is salary sacrificing?

Salary Sacrificing is an arrangement between an employer and an employee that allows an employee to forgo part of their entitlement to salary or wages in return for a benefit of a similar value.

What salary sacrificing options does Hudson offer?

Hudson currently offer salary sacrificing via a regular contribution of a portion of your gross income into your superannuation account.

Who is eligible?

You are eligible for our salary sacrificing program if you are a Pay-As-You-Go (PAYG) contractor on an assignment with Hudson.

How does sacrificing into my superannuation account impact my gross income?

Overall, making regular deposits into your super account via a salary sacrifice arrangement could mean that you pay less income tax.

Superannuation contributions via salary sacrifice are classified as employer super contributions instead of employee contributions. Therefore, if you make super contributions via a salary sacrifice agreement, these contributions are taxed in the super fund at a maximum rate of 15%. Generally, this tax rate is less than your marginal tax rate.

How does salary sacrificing appear on my payment summary?

Salary sacrificing previously reduced your gross income, however the Australian Taxation Office has changed this so that your total earnings (regardless of any salary sacrifice) are reflected in your gross income. Your salary sacrifice is then factored into your tax return and is a deduction from your gross income.

How do I proceed with salary sacrificing through Hudson?

Please complete the attached Salary Sacrifice Form and return to support@hudson.com.

Salary Sacrifice Form.pdf

Where can I go to find some more information?

For queries relating to Hudson’s salary sacrificing policy, please contact support@hudson.com

For more information about salary sacrificing in general, the Australian Taxation Office has some useful content on their website: https://www.ato.gov.au/Individuals/Jobs-and-employment-types/Working-as-an-employee/Salary-sacrificing-for-employees/#:~:text=You%20and%20your%20employer%20agree,less%20tax%20on%20your%20income. https://www.ato.gov.au/individuals/super/growing-your-super/adding-to-your-super/Salary-sacrificing-super/

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