How salary sacrifice into super works
When you salary sacrifice, you agree with your employer to put part of your pre-tax salary into super instead of your bank account. That money is taxed at just 15% inside the fund, rather than your marginal rate plus the 2% Medicare levy. For most middle earners that’s a saving of 17 to 34 centson every dollar sacrificed. It also lowers your taxable income. The catch is that the money is locked away until your preservation age, around 60. New to it? Read how salary sacrifice works and what it saves you for the full explainer.
The concessional contributions cap
Before-tax contributions are capped at $32,500 for 2026-27, up from $30,000 in 2025-26. Your employer’s 12% Super Guarantee counts toward this cap, so your real sacrifice room is the cap minus what your employer already pays in. Go over the cap and the excess is taxed at your marginal rate, undoing the benefit. If your total super balance is under $500,000, you may be able to carry forward unused cap from the past five years.
Using your super towards a first home
If you’re saving for your first place, the First Home Super Saver scheme lets you salary sacrifice extra into super and later withdraw it towards a deposit. You can release up to $15,000of voluntary contributions from any one year and $50,000 in total, plus the earnings the ATO calculates on them. Because those contributions went in at the 15% rate rather than your marginal rate, you build the deposit faster than saving the same money in a regular account. Only voluntary contributions count, so your employer’s 12% doesn’t, and you apply to the ATO to release the funds when you’re ready to buy.
Other kinds of salary sacrifice
Super isn’t the only thing you can sacrifice. A novated lease lets you sacrifice a car from pre-tax salary, and an eligible electric vehicle can be exempt from Fringe Benefits Tax, which changes the sums completely. Those arrangements follow different rules to super and aren’t covered by this calculator, so treat them separately when you weigh them up.
Frequently asked questions
Is salary sacrificing into super worth it?
Usually yes if your marginal tax rate is above 15%, because you swap your marginal rate for the 15% contributions tax on the money going in. The trade-off is that the money is locked away until your preservation age, around 60.
How much can I salary sacrifice into super?
Up to your concessional cap, which is $32,500 for 2026-27 (up from $30,000 in 2025-26), minus your employer's Super Guarantee. Unused cap from earlier years may carry forward if your total super balance is under $500,000.
How much tax will I save?
Roughly your marginal rate plus the 2% Medicare levy, minus the 15% contributions tax, on each dollar you sacrifice. On a $100,000 salary that's a saving of around 17 cents in the dollar. The calculator works out your exact figure.
Salary sacrifice vs after-tax contributions?
Salary sacrifice comes out before tax and is taxed at 15% going in. After-tax (non-concessional) contributions come from money already taxed at your marginal rate, but aren't taxed again inside the fund. Sacrifice tends to win for higher earners; after-tax contributions plus the government co-contribution can suit lower earners.
Does salary sacrificing into super reduce my HECS/HELP repayment?
No. Reportable super contributions are added back when working out your repayment income, so your compulsory HECS/HELP repayment is unchanged even though your taxable income falls.
Can I use salary sacrifice super towards a first home?
Yes, through the First Home Super Saver (FHSS) scheme. Voluntary contributions, including salary sacrifice, can later be withdrawn towards a first home deposit: up to $15,000 from any one year and $50,000 in total, plus associated earnings. Only voluntary contributions count, not your employer's compulsory Super Guarantee, and you apply to the ATO to release the money.
Is a novated lease or electric car salary sacrifice the same thing?
No. This calculator is for salary sacrificing into super. Sacrificing a car through a novated lease is a separate arrangement with its own rules, and eligible electric vehicles can be exempt from Fringe Benefits Tax, which changes the maths entirely. We cover only super here.
What is the 30% FHSS tax offset?
When you withdraw voluntary contributions under FHSS, the withdrawn amount is added to your assessable income for that year, but you get a 30% tax offset against it. In practice this means the withdrawal is taxed well below your marginal rate, on top of the 15% contributions tax you already paid going in, which is what makes saving through FHSS more effective than a standard savings account for most earners.
When is salary sacrifice not worth it?
It stops making sense when your marginal tax rate is at or below the 15% contributions tax, since there's no rate gap to gain from. That's the case for income in the tax-free threshold or the 15% band (up to $45,000 in 2026-27). It's also a poor fit if you'll need the money before your preservation age of about 60, because super is locked away, or if sacrificing would push your before-tax contributions past the $32,500 concessional cap for 2026-27, where the excess is taxed at your marginal rate and the benefit is undone.
What are the disadvantages of salary sacrifice?
The main one is access: the money is locked in super until your preservation age, so it can't help with a shorter-term goal. Sacrificed pay can also reduce anything calculated on your cash salary, such as some leave loading or insurance figures, and going over the $32,500 concessional cap (2026-27) triggers extra tax. It won't cut your HECS/HELP repayment either, because reportable super contributions are added back to your repayment income. For most middle and higher earners the 15% tax rate still wins, but these are the trade-offs to weigh.
Salary sacrifice super vs voluntary contribution: which is better?
Salary sacrifice is a before-tax (concessional) contribution taxed at 15% going in, so it suits higher earners who want to cut taxable income. A voluntary after-tax (non-concessional) contribution comes from money already taxed at your marginal rate and isn't taxed again inside the fund, and if you earn under the income test it can attract the government co-contribution, which suits lower earners. Both count towards their own caps. Higher earners usually favour salary sacrifice; lower earners often do better with after-tax contributions plus the co-contribution.
General information, not financial advice.
