Super ideas to reduce tax

By Kama-Jade Lyons
Volume 48, No. 4, March 23, 2006

Piggy Bank

This article was contributed by SmartSalary, contracted to Defence as the sole salary packaging provider. Defence recommends independent financial advice be sought to take account of varying personal circumstances.


LOWERING your tax and increasing your superannuation is a goal of many ADF members and SmartSalary is one service provider which can help.

Salary packaging enables you to receive your salary as a combination of cash and benefits.

Benefits are paid from your pre-tax salary, reducing your taxable income and the amount of tax you pay.

You can sacrifice up to 100 per cent of your salary including Service allowances and ongoing shift penalties (where applicable).

How does my Super work now?

Each Defence member is allocated to one of the following superannuation funds administered by ComSuper - Commonwealth Super Scheme (CSS), Public Sector Superannuation Scheme (PSS), PSS Accumulation Plan (PSS–AP), Military Superannuation Benefits Scheme (MSBS) or Defence Force Retirement and Death Benefits Scheme (DFRDB).

As a member of one of the above funds, you are required to make after-tax Super contributions at a minimum level of your annual salary.

Further information on each of these schemes can be found online at http://www.comsuper.gov.au or by calling 1300 000 177.

Does my ComSuper fund accept pre-tax contributions?

MSBS and PSS-AP - Yes. These funds accept contributions from current members.
CSS and PSS -No.

DFRDB - No. DFRDB members are entitled to make contributions into an MSBS account using their current DFRDB member number.

You cannot salary package into your spouse’s Super.

What happens if my ComSuper fund doesn’t accept pre-tax contributions?

All members can contribute to any eligible Superannuation Fund or Retirement Savings Account (RSA) outside those administered by ComSuper. This is common and accepted practice and means you maintain two separate funds for retirement. At any stage in the future you can consider consolidating funds or you may elect to receive an income from each fund at retirement.

How much do I contribute and which fund should I select?

Research the available options and select a fund and contribution amount which will work for you. Financial advice is recommended and can be arranged at a government price of $150+GST. Financial advice fees can be salary packaged through SmartSalary.

For more information visit http://www.smartsalary.com.au (Employer Code=Defence), email defence@smartsalary.com.au or call 1800 632 496.

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