Salary Sacrifice Superannuation Calculator
See how salary sacrifice to super reduces your tax.
Boost your super and reduce your tax. See how salary sacrificing to super affects your take-home pay and builds your retirement savings.
Salary Sacrifice
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%.
Medicare levy surcharge
Both answers change whether a surcharge is owed at all, and so how much of the estimated saving is real.
Used with the answer below to decide whether the family surcharge threshold can be applied in place of the single one.
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.
Salary Sacrifice Estimate
Tax saved annually
$1,664
Take-home drops by $3,536 per year
- Current take-home
- $70,680
- Extra super (after 15% tax)
- $4,420
- New take-home
- $67,144
- Take-home drop
- -$3,536
- Sacrifice amount
- $5,200
- Worth considering at your income: salary taken as cash is taxed around 32% at the margin, but sacrificed dollars are taxed at just 15% inside super — saving you $1,664 in income tax this year.
Before/After Comparison
Income Breakdown
Take-home
$70,680
Tax
$19,320
Take-home
$67,144
Sacrifice
$5,200
Tax
$17,656
The Magic of Super Contributions
The government effectively leaves $1,664 inside your super instead of collecting it as tax.
Instant Return
25.0%
Guaranteed return on your money immediately.
Future Wealth
*Assumes 7% annual return
Component Comparison
| Component | Current | With Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | $84,800 |
| Taxable Income | $90,000 | $84,800 |
| Estimated Tax | -$19,320 | -$17,656 |
| Take-home pay | $70,680 | $67,144 |
| Superannuation | ||
| Employer SG | $10,800 | $10,800 |
| Salary Sacrifice (Gross) | $0 | $5,200 |
| Contributions Tax (15%) | $0 | -$780 |
| Total Super | $10,800 | $15,220 |
| Total Package | $81,480 | $82,364 |
Total Package = Take-home pay + Total Super — the full value of your package.
Salary sacrificing into super is taxed at 15%, which is often much lower than your marginal tax rate.
What's next
Example: $90,000 Salary (2026-27 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:$19,320
- Take-Home Pay:$70,680
✓With $5,200 Sacrifice
- Gross Income:$90,000
- Employer Super (12%):$10,800
- Total Super:$15,220
- Income Tax:$17,656
- Take-Home Pay:$67,144
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 2026–2027 is $32,500. This includes both employer SG contributions and your salary sacrifice amounts. Sacrificing does not reduce a study loan repayment — the amount is added back into your repayment income, as the HECS repayment calculator shows — while the long-run payoff is easier to see in the super projection calculator.
The Medicare levy surcharge reads that same added-back figure to set your tier, so sacrificing cannot bring you under the surcharge threshold. Unlike a study loan repayment, though, the surcharge is charged on taxable income plus reportable fringe benefits, so where a surcharge applies the dollar amount does fall. Set your private hospital cover and dependent children in the calculator above. Appropriate cover removes the surcharge for the days you hold it, but everyone it must cover — you, your spouse and any dependants — has to be covered, and one uncovered family member leaves the surcharge in place. The cover switch models a whole year, so part-year cover leaves the uncovered days liable. Dependants apply the family threshold in place of the single one only once you confirm you have no spouse, because the threshold is then tested on your income alone — correct for a sole parent. With a spouse the tier depends on your combined income, which is not collected here, so the estimate stays on the single-person threshold and you should use the income tax calculator, which takes a family income for the surcharge. The Medicare levy surcharge guide covers the thresholds and tiers.
Sacrificing a car instead?
Packaging a vehicle works differently — it factors in FBT, GST, and running costs. Use the novated lease calculator to compare a lease against a car loan or cash, including the EV FBT exemption.
Frequently Asked Questions
What is the concessional contributions cap?
The concessional contributions cap is $32,500 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 $32,500 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 $32,500 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 $32,500 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 $32,500 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.
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