What does sacrificing into super actually save?
Putting pre-tax pay into super is taxed at just 15% — but only some of it is a real win. See your true benefit after the 15% contributions tax, and exactly how much your take-home drops. Built on 2026–27 ATO rates.
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How salary sacrifice saves you tax
Pre-tax pay sent to super is taxed at a flat 15% in the fund, instead of your higher marginal tax rate — so you pocket the difference, in super.
Thinking about salary sacrifice into superannuation? This salary sacrifice calculator runs the calculation for you: enter your annual salary and a sacrifice amount, and it shows the tax saving, the hit to your take home pay, and what lands in super. It's designed to take into account your personal income tax, the Medicare levy and the 15% super contributions tax, so the figure is what you'd genuinely be better off by.
When you salary sacrifice, you agree to receive less take-home pay and have that amount paid straight into your super before income tax applies. Because super contributions are taxed at just 15%, while your top slice of salary might be taxed at 30%, 37% or 45% plus the 2% Medicare levy, the gap is your saving. On a $90,000 salary, sacrificing $10,000 saves roughly $1,700 a year once the 15% contributions tax is counted — and your take-home only drops by about $6,800, because the rest was tax you would have paid anyway.
The higher your income, the bigger the gap between your marginal rate and 15%, so the more sacrificing pays off. Lowering your taxable income can also keep you under the Medicare levy surcharge thresholds if you don't hold private hospital cover. Use the calculator above to see your own numbers, including the effect on your take-home pay.
Taxed 15% in super
Sacrificed contributions are taxed at 15% inside super, not your marginal rate — the saving is the difference between the two.
$32,500 cap
From 1 July 2026 the concessional cap is $32,500 a year, including employer super. Go over and the excess is taxed at your marginal rate.
Doesn't cut HECS
Sacrificed super is added back for HECS/HELP, so your compulsory repayment doesn't change — only your income tax does.
The 15% catch — and when sacrificing doesn't pay
Salary sacrifice isn't free money. The amount going into super is taxed at 15% on the way in, so the real benefit is your marginal tax rate minus 15%. Two things to watch:
- Lower incomes. If your marginal rate is at or below 15%, you save little or nothing — and could even go backwards once the contributions tax is counted. The calculator flags this if it applies to you.
- High incomes (Division 293). If your income plus concessional contributions is over $250,000, those contributions are taxed at 30%, not 15% — halving the benefit, though it's usually still worthwhile.
There's a partial offset for low earners: the Low Income Superannuation Tax Offset (LISTO) effectively refunds the 15% contribution tax — up to $500 a year — for people earning under about $37,000, so at the bottom the tax on sacrificed contributions all but disappears. The separate Low Income Tax Offset (LITO) reduces income tax for lower earners too. Neither changes the basic rule, though: if your marginal rate isn't above 15%, salary sacrifice doesn't get you ahead.
Sacrificed money is also preserved in super: you generally can't touch it until you reach your preservation age (60) and retire. It's a tax-effective way to save for retirement, not a way to free up cash now.
Salary sacrifice and your HECS/HELP
This is where many calculators get it wrong. Salary sacrificing lowers your taxable income for income tax — but not for HECS/HELP. When the ATO works out your repayment income, it adds the sacrificed amount back as reportable super contributions. So your compulsory student-loan repayment is exactly the same whether you sacrifice or not. Tick the HECS/HELP option above and you'll see the repayment stay put. Plan around the income-tax saving alone — the HECS saving is zero.
Salary packaging and novated leases
Super isn't the only thing you can package. A novated lease lets you pay for a car and its running costs from pre-tax salary, which can cut tax in a similar way but follows separate fringe benefits rules. Employees of some not-for-profits, hospitals and charities can also salary package everyday expenses up to set caps. These follow different rules to super sacrifice; this calculator focuses on concessional contributions to super, the most common form of salary sacrifice.
Before-tax and after-tax contributions, and the cap
Money reaches your super fund two ways. Concessional (before-tax) contributions — your employer's super guarantee plus anything you salary sacrifice — are taxed at 15% in the fund and count toward the concessional contribution cap of $32,500 from 1 July 2026. Non-concessional contributions are an after-tax contribution: they come from money you've already paid personal income tax on, so they aren't taxed again on the way in and have their own, higher cap.
Salary sacrifice is a concessional, before-tax salary contribution. Because the cap counts your salary sacrificed amount and the super guarantee together, keep the total under the contribution cap — going over means the excess is added back to your income and taxed at your marginal rate. Make sure your fund has your tax file number, or contributions are taxed at a much higher rate. If you have unused cap from earlier years, you may be able to carry it forward and make larger voluntary contributions. This salary package calculator is based on contributions made within the cap.
Related calculators
All built on the same ATO figures for 2026–27.
Frequently asked questions
How does salary sacrificing into super save tax?
It moves part of your pre-tax pay into super, where it's taxed at 15% instead of your marginal income tax rate. If your marginal rate is 30% plus the 2% Medicare levy, each dollar sacrificed saves about 17 cents — while still ending up as your money in super.
Is there a catch with salary sacrifice?
Yes. Contributions are taxed 15% going into super (30% if your income is over $250,000, under Division 293). If your marginal rate is at or below 15%, you save little or nothing. The money is also preserved in super until you can access it.
Does salary sacrifice reduce my HECS/HELP repayment?
No. The sacrificed amount is added back as reportable super contributions when your HELP repayment income is worked out, so your compulsory repayment is unchanged. The income tax saving is real; the HECS saving is zero.
What is the concessional contributions cap for 2026–27?
From 1 July 2026 the general concessional cap is $32,500 (it was $30,000 to 30 June 2026). This cap includes your employer's compulsory super, so your sacrifice plus employer contributions must stay under it, or the excess is taxed at your marginal rate.
What's the difference between salary sacrifice and a novated lease?
Salary sacrifice usually means extra contributions into super. A novated lease is salary packaging a car — lease and running costs come from pre-tax pay under separate fringe benefits rules. Both cut your taxable income; this calculator models sacrifice into super.
Is salary sacrifice worth it?
It depends on your marginal tax rate. Above 15%, salary sacrifice contributions are taxed less inside super than in your pay, so you come out ahead and boost your Australian retirement savings. At or below 15%, it's usually not worth it.
Do you pay tax on salary sacrifice to super?
Yes — a contributions tax of 15% applies inside the fund (a tax of 15% on concessional contributions), still well below most people's marginal rate. For the 2025-26 financial year and 2026-27, the concessional cap also limits how much you can sacrifice at that rate.
What can you salary sacrifice?
Most commonly extra super contributions. You may also be able to package a novated lease (a car), and employees of some not-for-profits, hospitals and charities can package everyday expenses up to set caps.
What are the disadvantages of salary sacrifice?
The money is preserved in super until you reach preservation age (60) and retire, the concessional cap limits how much you can contribute, and there's little or no benefit if your marginal tax rate is at or below the 15% contributions tax.