Salary sacrifice calculator
This salary sacrifice calculator shows what happens when you put part of your pre-tax salary into super. It works out the tax you save, how much your take-home pay drops each fortnight, how much extra lands in your fund after 15% contributions tax, and whether your total stays inside the $32,500 concessional cap for 2026-27.
Updated 12 November 2026 · Uses 2026-27 figures
Work out your salary sacrifice saving
Enter your salary before super and how much extra you want to sacrifice each year.
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.
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Find workHow to use the salary sacrifice calculator
- Enter your salary per year before super.
- Enter the extra amount you want to salary sacrifice to super each year. To use a fortnightly amount, multiply it by 26.
- Read the yearly tax saving, the drop in take-home pay per year and per fortnight, and the extra super after tax.
- Check the cap line. If it says you are over, reduce the amount.
How does salary sacrifice work?
Salary sacrifice is an agreement with your employer to pay part of your pre-tax salary straight into super. Because it comes out before income tax, that money is taxed at 15% in the fund instead of at your marginal tax rate plus the 2% Medicare levy. The gap between those two rates is your saving.
The calculator assumes your employer keeps paying the 12% super guarantee on your full salary and adds the sacrifice on top. Most employers do, but check your agreement, because some employers calculate the guarantee on the reduced salary.
| Taxable income | Marginal tax rate | Saving per $1,000 sacrificed* |
|---|---|---|
| $18,201 to $45,000 | 15% | about $20 |
| $45,001 to $135,000 | 30% | about $170 |
| $135,001 to $190,000 | 37% | about $240 |
| Over $190,000 | 45% | about $320 |
*Marginal rate plus 2% Medicare levy, minus 15% contributions tax. On the lowest tax band the saving is small, and offsets can reduce it to nothing.
Worked example
Salary $90,000, sacrificing an extra $5,000 a year.
Your take-home pay drops by $3,400 a year, about $130.77 a fortnight. Your super grows by $4,250 after the 15% contributions tax. You save $850 a year in tax compared with taking the $5,000 as pay and paying 30% tax plus Medicare.
Total concessional contributions are $15,800: $10,800 of employer super guarantee plus your $5,000. That is well inside the $32,500 cap.
If the same person sacrificed $16,700, their total would reach $27,500. The tax saving rises to $2,839, while take-home pay falls by $11,356 a year.
How much can I salary sacrifice into super?
All before-tax contributions count towards the concessional contributions cap, which is $32,500 for 2026-27. That includes:
- the 12% super guarantee your employer pays
- salary sacrifice
- personal contributions you claim as a tax deduction
So the room left for salary sacrifice is $32,500 minus your employer's 12%. On $90,000, that leaves about $21,700. If your total super balance was under $500,000 on 30 June last year, you may be able to use unused cap amounts from the previous five years.
Going over the cap means the excess is added to your taxable income and taxed at your marginal rate, with a tax offset for the 15% already paid. People with income and concessional contributions over $250,000 pay an extra 15% (Division 293 tax).
Is salary sacrifice worth it?
It is usually worth considering if you are on the 30% rate or higher and can afford to lock money away until preservation age, which is 60 for most people. It is less useful, or not worth it, when:
- your income is under about $45,000, where the saving is small or nil
- you need the money in the next few years for rent, debts or a home deposit
- you are close to the cap from employer super alone
- you are a low-income earner who would otherwise get the government co-contribution on after-tax contributions
Salary sacrifice also lowers your taxable income, but reportable employer super contributions are added back for some tests, such as HELP repayments, the Medicare levy surcharge and some Centrelink payments.
What else can you salary sacrifice?
Besides super, employers can let you sacrifice other benefits, though these may attract fringe benefits tax. Common ones are a car through a novated lease, laptops and phones used mainly for work, and, for health and charity workers, capped amounts of everyday expenses under salary packaging. You cannot salary sacrifice a HECS debt, and mortgage or rent payments are only practical for employees of some health and not-for-profit employers.
Frequently asked questions
What is salary sacrifice?
It is an arrangement where your employer pays part of your pre-tax salary into super, or towards another benefit, instead of paying it to you as wages. Money sacrificed to super is taxed at 15% in the fund instead of at your marginal tax rate.
How much can I salary sacrifice into super in 2026-27?
Total before-tax contributions, including your employer's 12%, must stay under the $32,500 concessional cap. Subtract your employer super from $32,500 to find the most you can sacrifice without going over, unless you have unused cap amounts you are eligible to carry forward.
When is salary sacrifice not worth it?
When your income is low enough that your marginal tax rate is 15% or nil, when you need the money before you can access super, or when employer super already takes you close to the cap. It can also affect income tests that add back reportable super contributions.
Does salary sacrifice reduce your taxable income?
Yes. Amounts sacrificed are not included in your assessable income. They are shown on your income statement as reportable employer super contributions, which count for some tests such as HELP repayment income and the Medicare levy surcharge.
Can I salary sacrifice my mortgage?
Usually not in a tax-effective way. Employees of public hospitals, health services and some not-for-profits can package capped amounts of everyday expenses, which can include mortgage or rent, because of their fringe benefits tax concessions. Most other employees cannot.
Can you salary sacrifice HECS?
No. HELP debts are repaid through compulsory repayments assessed on your tax return and any voluntary payments you make. Salary sacrificing to super lowers your taxable income but the sacrificed amount is added back when working out your HELP repayment income.
How do I set up salary sacrifice?
Ask your payroll team for a salary sacrifice form, agree the amount in writing before you earn the pay, and check your payslips and super fund to confirm it is being paid. You can usually change or stop it with notice.
Related calculators
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Super guarantee guideSources and assumptions
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.