Salary Sacrifice (AU)
Salary sacrifice is an arrangement where your employee agrees to give up part of their pre-tax salary in exchange for something else, like super payments, a gym membership, a car, etc.
With the introduction of Payday Super in July 2026, the salary sacrifice rules that applied to ordinary time earnings now apply to qualifying earnings: if a payment is considered qualifying earnings, then a portion of that payment sacrificed to superannuation is also considered qualifying earnings.
Example salary sacrifice arrangements
Not all salary sacrifice arrangements are treated the same. It depends on what's being sacrificed and from what kind of pay. To make sure you pay and report salary sacrifice correctly, we've put together examples of how to set up different arrangements in MYOB Acumatica — Payroll:
- Salary sacrifice to super from ordinary earnings, where ordinary earnings remain at the full pre-sacrifice amount.
- Salary sacrificed to superannuation, where the salary that is sacrificed would not otherwise be qualifying earnings if it was instead paid to the employee, such as paid parental leave or overtime.
- Salary sacrificed to other employee benefits, including amounts that are fringe benefits and exempt fringe benefits.