Salary sacrifice calculator.

How salary sacrifice into super works

Salary sacrifice, also called salary packaging into super, is an arrangement where you agree with your employer to take part of your pre-tax pay as an additional employer contribution to your super fund. Because the money is paid as a concessional (before-tax) contribution, it is taxed in the fund at 15% instead of at your marginal rate plus the Medicare levy. The gap between the two rates is where the saving comes from, and it is the reason the benefit grows as income rises. The calculator above works out that gap for a given salary and sacrifice, applies the concessional cap, and flags whether Division 293 applies.

The rule of thumb: marginal rate minus 15%

For each dollar sacrificed you avoid income tax at your marginal rate (and the 2% Medicare levy, if you include it) and pay 15% contributions tax inside the fund. At a marginal rate of 30% plus 2% levy you keep about 17 cents of extra value per dollar; at 37% plus 2%, about 24 cents; at 45% plus 2%, about 32 cents. Below the 15% band the advantage is small or negative, which is why people on low incomes are often better off with other strategies. The trade-off is access: the money is generally locked in super until you meet a condition of release.

The cap: employer super comes first

The ATO states that the general concessional contributions cap is $32,500 from 1 July 2026, up from $30,000 for 2024-25 and 2025-26, following indexation. All concessional contributions count towards it, including the super guarantee your employer pays, which the ATO lists at 12% for 2026-27 (on earnings up to the maximum contribution base of $270,830). That is why the tool subtracts employer super before showing how much room you have left. Unused cap can be carried forward for up to five years if your total super balance was below $500,000 on 30 June of the previous year; this page does not model carry-forward, so it may understate how much you can sacrifice. Contributions above the cap are excess concessional contributions and are treated differently.

Worked examples (2026-27)

$100,000 salary, $10,000 sacrificed. Employer super at 12% is $12,000, so cap room is $20,500. Income tax and Medicare on $100,000 is $22,520; on $90,000 it is $19,320, a saving of $3,200. The fund taxes the $10,000 at 15%, which is $1,500, so $8,500 reaches your account. Take-home pay falls by $6,800. You end up $1,700 ahead in total dollars, though $8,500 of it is in super.

$60,000 salary, $5,000 sacrificed. Employer super is $7,200. The tax and Medicare saving is $1,600, the fund keeps $750 and $4,250 goes into your account; take-home pay falls by $3,400. The advantage is $850.

$150,000 salary, $20,000 sacrificed. Employer super is $18,000, leaving only $14,500 of room under the $32,500 cap. The calculator models $14,500: it saves $5,655, the fund keeps $2,175 and $12,325 is added to your super, for a net advantage of $3,480. The extra $5,500 would be an excess concessional contribution, which the ATO says is included in your tax return as taxable income instead of being taxed at 15%, so it is excluded from the estimate.

$200,000 salary, $20,000 sacrificed. Employer super is $24,000, leaving $8,500 of room. The calculator models $8,500, saving $3,995 for a net advantage of $2,720.

Division 293 for higher earners

The ATO charges Division 293 tax, an extra 15%, when your Division 293 income plus Division 293 super contributions exceed $250,000. The tax applies to the lesser of the excess over $250,000 and your taxable contributions. This calculator uses your salary after the sacrifice as income, so it will not capture reportable fringe benefits, net investment losses or one-off events like a large capital gain. Use the Division 293 tax calculator if you are near the threshold.

Things the calculator does not do

• It does not model investment returns, fund fees or insurance premiums inside the fund.
• It does not apply low-income Medicare thresholds, offsets or the Medicare levy surcharge.
• It does not reduce HELP repayments. Reportable super contributions are added back when the ATO works out repayment income, so sacrificing does not lower a study loan repayment; see the HELP / HECS repayment calculator.
• It cannot tell whether your award or contract counts the sacrificed amount when calculating employer super. Since 1 July 2026 employers calculate the super guarantee on qualifying earnings, so ask your payroll team how your arrangement is treated.

Salary sacrifice or a personal deductible contribution?

A personal contribution you claim as a tax deduction also counts as a concessional contribution and has a similar tax effect, but it involves paperwork with your fund (a notice of intent) and happens after tax. Salary sacrifice happens through payroll and reduces your taxable income immediately. Check the ATO guidance on caps and deductions before choosing, and consider speaking to a licensed financial adviser; this page is an estimate, not advice. The super guarantee calculator shows what your employer owes on top of your salary.

Sources

Official and primary sources used for this page, retrieved October 2026.

• ATO: Contributions caps (retrieved 2026-10): General concessional cap of $32,500 from 1 July 2026, carry-forward rules and excess contributions.
• ATO: Super guarantee (retrieved 2026-10): Super guarantee percentage and the maximum contribution base of $270,830 for 2026-27, plus the move to qualifying earnings from 1 July 2026.
• ATO: Tax rates, Australian resident (retrieved 2026-10): 2026-27 resident rates and the Medicare levy rate.
• ATO: Division 293 tax on concessional contributions by high-income earners (retrieved 2026-10): Division 293 threshold, income and contribution definitions.
• ATO: Study and training loan repayment thresholds and rates (retrieved 2026-10): Repayment income includes reportable super contributions.