Salary sacrifice into super saves tax at your marginal rate (30–47%) and replaces it with the 15% contributions tax. The net saving — your marginal rate minus 15% — directly increases your wealth. This calculator shows your annual tax saved, effective cost, and net super added for FY 2025-26.
Suppose you earn $120,000 and salary-sacrifice $10,000 into super.
You'd otherwise pay tax on that $10,000 at your marginal rate
(30% + 2% Medicare = 32%) — a $3,200 tax hit. By sacrificing, the
money goes to super where it's taxed at 15% — $1,500.
Net saving: $1,700 per $10,000 sacrificed.
Higher earners benefit more. A $200,000 earner sacrificing $10,000
saves ~$3,200 in tax (at 47% marginal rate) vs $1,500 contributions
tax = $1,700 net + the $10,000 still going into super.
FY 2025-26 concessional contribution cap
The cap is $30,000 total concessional contributions
per year, indexed annually. This includes:
Employer SG (12% of ordinary time earnings)
Voluntary salary sacrifice
Personal deductible contributions (claimed via your tax return)
On a $100,000 salary, employer SG of $12,000 uses 40% of the cap.
Remaining headroom: $18,000 of salary sacrifice. On a $250,000
salary, employer SG is $30,000 — capping you out with no room
for sacrifice. Carry-forward unused cap (from the prior 5 years)
may apply if your total super balance is under $500,000.
You redirect pre-tax salary into super INSTEAD of receiving it as wages. The sacrificed amount: (a) reduces your taxable income — saving income tax at your marginal rate (often 30%, 37%, or 47% including Medicare); (b) goes into super where it's taxed at just 15% (the contributions tax). The arbitrage between your marginal rate and 15% is the tax saving.
What's the concessional contribution cap?
$30,000 per financial year for FY 2025-26 (indexed). This cap INCLUDES the 12% Superannuation Guarantee your employer pays. Example: on a $100k salary, employer SG is $12,000, leaving $18,000 of headroom for salary sacrifice. Exceeding the cap triggers extra tax — but unused cap from the prior 5 years can be carried forward if your total super balance is under $500,000.
When is salary sacrifice not worth it?
If your marginal rate (including Medicare) is BELOW 15%, sacrificing actually increases tax. This affects people earning under ~$21k who pay 0% income tax — the 15% contributions tax would be a loss. Above that, sacrifice wins. At the 30% bracket, you save 15% per dollar. At 37%, 22%. At 47%, 32%.
What about the Division 293 tax?
For very high earners (income + concessional super > $250k), the contributions tax becomes 30% instead of 15% — halving the arbitrage benefit. The strategy still works but the gain is smaller. Not modeled by this calculator.
Can I salary sacrifice for things other than super?
Yes — laptops/work equipment, novated leases (cars), some education expenses. These are "non-super salary sacrifice" with different tax rules (often through Fringe Benefits Tax). This calculator focuses on the most common case: pre-tax super contributions.
Does salary sacrifice reduce my HECS-HELP repayment?
No — salary sacrifice amounts are added back to compute "repayment income" for HECS purposes. This is by design to prevent borrowers from avoiding compulsory repayments. The federal tax savings are real, but your HECS bill is calculated on pre-sacrifice income.
How does the 15% contributions tax work?
When sacrificed dollars enter your super fund, the fund pays 15% tax on the contribution. So a $10,000 sacrifice nets $8,500 into your super balance. The calculator shows this as "net super added" — distinguishing from gross contribution.