Salary sacrificing can be an effective way to build retirement savings tax-efficiently, particularly for higher income earners.

Concessional contributions are generally taxed at a lower rate than many personal marginal tax rates, which can make this strategy attractive. However, contribution caps apply and exceeding them can result in penalties.

Whether salary sacrifice is appropriate depends on your cash flow needs, existing contribution levels and broader financial priorities. Advice ensures the strategy supports both your short-term lifestyle and long-term retirement goals.