Salary Sacrifice Super Calculator
Salary sacrificing into super means directing part of your pre-tax salary into your super fund instead of taking it as cash. Because super contributions are generally taxed at 15% rather than your marginal income tax rate, this can mean more money ends up in your pocket (well, your retirement account) than if you'd taken it as regular pay. Use the calculator below to see the real numbers for your situation.
Assumes your full sacrificed amount is taxed at your marginal income tax rate plus the 2% Medicare Levy if taken as salary, versus the standard 15% contributions tax inside super. Uses 2025–26 resident tax brackets. Concessional contributions (employer SG plus any salary sacrifice) are generally capped at $32,500 per year — exceeding this may result in extra tax. This is a simplified estimate, not financial or tax advice; your actual outcome depends on your full tax position.
How Salary Sacrifice Saves Tax
When you earn salary, it's taxed at your marginal rate — which for many Australians sits at 30% or higher once you account for the Medicare Levy. When you salary sacrifice into super instead, that same amount is only taxed at 15% inside the fund (unless you exceed the concessional contributions cap). The difference between what you'd have paid in income tax and the 15% contributions tax is the tax saving.This generally becomes more valuable the higher your marginal tax rate — someone on the 37% or 45% bracket saves considerably more per dollar sacrificed than someone on the 16% bracket.
The Concessional Contributions Cap
There's a limit to how much can go into super at the concessional (lower) tax rate each year currently $32,500, which includes both your employer's Super Guarantee payments and anything you salary sacrifice. If your combined total goes over this cap, the excess is generally taxed at your marginal rate instead, removing most of the benefit. The calculator above will warn you if your inputs would exceed this cap.
Is Salary Sacrifice Right for You?
Salary sacrifice tends to suit people who don't need every dollar of take-home pay right now and are comfortable having that money locked away until retirement (super generally can't be accessed until you meet a condition of release, such as reaching preservation age). It's less suited to those prioritising short-term savings, paying down high-interest debt, or who may need flexible access to their money.
Frequently Asked Questions
Do I need my employer's permission to salary sacrifice?
Yes — salary sacrifice is an agreement between you and your employer, arranged before you earn the income. You can't retroactively sacrifice salary you've already been paid.
Is salary sacrifice the same as a personal deductible contribution?
No, though they achieve a similar tax outcome. Salary sacrifice happens through your employer before tax; a personal deductible contribution is money you contribute yourself and then claim a tax deduction for at tax time. Both count toward the same concessional cap.
What happens if I go over the concessional cap?
Amounts above the cap are generally added to your taxable income and taxed at your marginal rate, with an additional charge to account for the tax timing difference. It's generally worth tracking your total concessional contributions across the year to avoid this.
Disclaimer: This information is general in nature and not financial or tax advice. See our full Disclaimer for details.