Salary Sacrifice Super Calculator Australia — How Much Can You Save?
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Salary sacrificing into super reduces your taxable income and boosts your super balance — often at a lower net cost than you might expect. Use this calculator to see exactly how much tax you save and what it costs in take-home pay.
Salary Sacrifice Super Calculator
How Salary Sacrifice Saves Tax
When you salary sacrifice into super, the sacrificed amount is:
- Removed from your taxable income — you pay income tax on a lower salary
- Contributed to super as a concessional contribution — taxed at 15% inside the fund
Because most workers pay more than 15% on their marginal income (19%, 32.5%, 37%, or 45%), the difference between your marginal rate and 15% is the effective tax saving.
Example — $90,000 salary, $10,000 salary sacrifice:
- Marginal rate at $90,000: 32.5% + 2% Medicare = 34.5%
- Super contributions tax: 15%
- Tax saving per dollar sacrificed: 34.5% − 15% = 19.5 cents in every dollar
- Total saving on $10,000: $1,950 in income tax saved
- The $10,000 goes into super — $8,500 after the 15% contributions tax
- Take-home pay reduces by $10,000 × (1 − 34.5%) = $6,550
You give up $6,550 in take-home pay to put $8,500 into super. The “extra” $1,950 is pure tax saving.
The Concessional Cap — What You Must Watch
Total concessional contributions (employer SG + salary sacrifice + personal deductible) must not exceed $30,000 in FY2025–26.
| Salary | Employer SG (12%) | Available Salary Sacrifice Room |
|---|---|---|
| $100,000 | $12,000 | $18,000 |
| $150,000 | $18,000 | $12,000 |
| $200,000 | $24,000 | $6,000 |
| $250,000+ | $30,000 | $0 (cap met by SG alone) |
At high salaries, your employer’s SG alone can approach or exceed the $30,000 cap. Always check your available room before setting up salary sacrifice. See Excess Concessional Contributions.
How to Set Up Salary Sacrifice
- Talk to your employer’s HR or payroll team — not all employers offer salary sacrifice for super
- Complete your employer’s salary sacrifice agreement (varies by organisation)
- Specify the dollar amount or percentage to be sacrificed per pay period
- Monitor your year-to-date concessional contributions via myGov to ensure you stay within the $30,000 cap
What Salary Sacrifice Looks Like Over Time
Salary sacrifice saves tax each year, but its real power is the compound growth of extra contributions over time. Using the example of $10,000/year salary sacrifice on a $90,000 salary:
| Years of salary sacrifice | Tax saved (total) | Extra super accumulated (7% p.a.) |
|---|---|---|
| 5 years | ~$9,750 | ~$48,000 |
| 10 years | ~$19,500 | ~$117,000 |
| 20 years | ~$39,000 | ~$388,000 |
| 30 years | ~$58,500 | ~$943,000 |
Assumes $1,950/year income tax saved (32.5% bracket), $8,500/year net into super after 15% contributions tax, 7% p.a. return. Illustration only.
The longer salary sacrifice runs, the more the compounding effect dwarfs the immediate tax saving. Starting salary sacrifice at 35 rather than 45 on a $90,000 salary adds roughly $320,000 to the retirement balance.
Salary Sacrifice vs Personal Deductible Contributions — What’s the Difference?
Both are concessional contributions (taxed at 15% in the fund), but they work differently:
| Salary sacrifice | Personal deductible contribution | |
|---|---|---|
| When money moves | Each pay cycle | Any time during the financial year |
| Tax saving timing | Immediate (lower tax withheld from pay) | On lodgement of tax return |
| Employer required | Yes — employer must agree | No — you contribute directly |
| PAYG withholding | Reduced at source | Normal tax withheld, refunded at tax time |
| Best for | Regular, ongoing contributions | Irregular or lump-sum contributions (self-employed, windfalls) |
For most employees, salary sacrifice is simpler for regular contributions. For self-employed Australians, personal deductible contributions are the primary mechanism. See Personal Super Contributions and Super for Self-Employed.
Division 293 Tax — High Earners Above $250,000
If your income (including super contributions) exceeds $250,000, the ATO levies Division 293 tax — an additional 15% on concessional contributions. This means your contributions are effectively taxed at 30% rather than 15%.
Salary sacrifice still saves significant tax at this income level:
- Marginal rate above $180,000: 45% + 2% Medicare = 47%
- Contributions tax with Div 293: 30%
- Net tax saving per dollar sacrificed: 17 cents
The calculator above does not include Division 293 — if you earn above $250,000, your actual tax saving will be lower. See Division 293 Tax.
Frequently Asked Questions
How do I know if salary sacrifice is right for me? Salary sacrifice makes the most financial sense when your marginal income tax rate exceeds 19% (i.e., income above $18,200 after adjustments). At the 32.5% or 37% bracket, the saving per dollar sacrificed is 17.5–22 cents. At the 19% bracket, the saving is just 4 cents per dollar — less compelling, particularly if funds are locked away until age 60.
Will salary sacrifice affect my employer’s SG contributions? Salary sacrifice reduces your “salary” from which SG is calculated — unless your employer calculates SG on your pre-sacrifice salary. Some employment agreements and awards require SG to be calculated on the original salary. Check your contract or ask your payroll team. See Salary Sacrifice Super.
Can I salary sacrifice as a casual employee? There is no legislative reason you cannot salary sacrifice as a casual employee — but the employer must offer it. Many large employers extend salary sacrifice arrangements to casual staff; smaller employers may not. Ask your employer’s HR or payroll.
What happens if I accidentally exceed the $30,000 concessional cap? Excess concessional contributions are included in your assessable income and taxed at your marginal rate — minus a 15% tax offset (to account for the contributions tax already paid by the fund). The ATO will issue an Excess Concessional Contributions determination. See Excess Concessional Contributions.
Does salary sacrifice affect Centrelink payments or HECS repayments? Salary sacrifice reduces your reported taxable income. This can affect income-tested Centrelink payments (such as Family Tax Benefit or Child Care Subsidy) and HECS/HELP repayment thresholds — both of which are based on adjusted taxable income. Modelling the effect on any income-tested benefits is important before committing to a large salary sacrifice amount. Your fund and the ATO calculate “reportable employer super contributions” (RESC) to partly capture this, but the exact impact varies.
Can I salary sacrifice up to 100% of my income? No — you cannot sacrifice more than you are paid. However, salary sacrifice also cannot reduce your take-home pay below award minimums or the Fair Work minimum wage. In practice, the $30,000 concessional cap is the binding constraint for most employees.
See also: Super Calculators. For further guidance, see Salary Sacrifice Super Explained, Concessional Contributions, Division 293 Tax. For advice tailored to your situation, speak with a licensed financial adviser through MoneySmart.