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Salary Sacrifice Superannuation Calculator

See how salary sacrifice to super reduces your tax.

Salary Sacrifice

Your income
showing as year
$/ year
$2k / year$300k / year

Salary sacrifice amount

$

Choose how much to contribute from pre-tax salary.

Employer super rate

%

Standard rate is 12%. Universities often pay 17%, APS 15.4%.

Did you know?

Super contributions are taxed at just 15%, compared to marginal rates that can be as high as 47% including Medicare levy.

Compound magic

Every dollar you salary sacrifice today could grow materially over time if it stays invested inside super.

Smart strategy

The tax benefit is strongest when you stay inside the concessional cap and avoid Division 293 surprises.

Example: $90,000 Salary (2025-26 rates)

See how salary sacrificing $100/week ($5,200/year) into super can save you money:

Without Extra Super

  • Gross Income:$90,000
  • Employer Super (12%):$10,800
  • Total Super:$10,800
  • Income Tax:$19,588
  • Take-Home Pay:$70,412
WITH PACKAGING

With $5,200 Sacrifice

  • Gross Income:$90,000
  • Employer Super (12%):$10,800
  • Total Super:$15,220
  • Income Tax:$17,924
  • Take-Home Pay:$66,876

Result: Your super grows by $4,420 extra per year while your take-home only drops by $3,536. That's a $1,664 net tax saving thanks to the 15% concessional tax rate vs your 30% marginal rate!

How Salary Sacrifice to Super Works

Salary sacrificing into super involves asking your employer to pay part of your pre-tax salary into your super account. This is taxed at a concessional rate of 15%, which is usually lower than your marginal income tax rate.

Key Benefits

Pay less income tax now

Reduce your taxable income each pay cycle.

Boost retirement savings

Extra contributions compound over decades.

Concessional tax rate

Contributions are taxed below most marginal rates.

Carry forward unused cap

Catch up on unused concessional cap from recent years if eligible.

Important: The concessional contributions cap for 2025–2026 is $30,000. This includes both employer SG contributions and your salary sacrifice amounts.

Frequently Asked Questions

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What is the concessional contributions cap?

The concessional contributions cap is $30,000 per financial year. This includes your employer's Super Guarantee (SG) contributions and any salary sacrifice amounts. If you exceed this cap, the excess is taxed at your marginal tax rate.

How much tax do I save by salary sacrificing to super?

Salary sacrificed amounts are taxed at 15% instead of your marginal income tax rate. For example, if you earn $90,000, your marginal rate is 30% (plus Medicare levy). By sacrificing into super, you save the difference between your marginal rate and the 15% contributions tax.

What is Division 293 tax?

Division 293 tax is an additional 15% tax on concessional super contributions for high-income earners. If your income plus concessional contributions exceed $250,000, you'll pay an extra 15% tax (total 30%) on the amount over the threshold.

Can I access my salary sacrifice super contributions?

Generally, no. Salary sacrifice contributions are preserved in your super fund until you reach your 'preservation age' and retire, or meet another condition of release. This is a long-term investment strategy for retirement.

How do I salary sacrifice to super?

Ask your employer's payroll or HR team to set up a salary sacrifice arrangement. You nominate the amount per pay cycle (e.g., $100/week) and your employer deducts it from your pre-tax salary and sends it to your super fund. The arrangement can usually be changed or stopped at any time.

Can I salary sacrifice if I already have employer super?

Yes. Employer Super Guarantee (SG) contributions are separate from salary sacrifice. Your employer still pays the mandatory SG rate on your ordinary earnings. Your salary sacrifice is an additional contribution on top of that. Both count toward the $30,000 concessional cap.

What happens if I exceed the concessional cap?

Excess concessional contributions are included in your assessable income and taxed at your marginal rate (instead of 15%). You also receive a tax offset for the 15% already paid in super. If you have unused cap amounts from previous years (since 2018-19), you may be able to carry them forward — check with the ATO.

Is salary sacrificing to super worth it?

It depends on your income. Salary sacrifice contributions are taxed at 15% inside super, so the higher your marginal tax rate, the more you save — the gap between the two rates is the benefit. For most people earning above the lowest tax brackets it cuts tax now while building retirement savings. The main trade-off is access: the money is preserved in super until you meet a condition of release. Where your marginal rate is already close to the 15% contributions tax, the saving is small. Use the calculator above to see your own result.

How much should I salary sacrifice into super?

A common approach is to top up your total concessional contributions — employer Super Guarantee plus salary sacrifice — toward the $30,000 annual cap, without sacrificing so much that you can't cover living costs and debts. Your employer contributions already use part of the cap, so the room left for salary sacrifice is $30,000 minus what your employer pays. Going over the cap means the excess is taxed at your marginal rate. The calculator warns you if your contributions would exceed the cap as you adjust the amount.

Can you salary sacrifice 100% of your salary?

No. You can't sacrifice your entire salary — your employer must still withhold PAYG tax and you need enough take-home pay to live on. Salary sacrifice to super is also capped: total concessional contributions above $30,000 per year are taxed at your marginal rate instead of the concessional rate, which removes the benefit. Most people sacrifice a set amount each pay that keeps their contributions under the cap while leaving enough cash in hand. Use the calculator above to test different amounts.