Updated October 2026 for the 2026–27 financial year.
How salary sacrifice works
Salary sacrifice is an arrangement with your employer to pay part of your before-tax salary into super. That money is taxed at 15% when it reaches your fund, instead of at your marginal tax rate. For most people earning over $45,000, that's less tax, so more of each dollar ends up working for you.
Your take-home pay drops by less than the amount you sacrifice, because you also pay less income tax. This calculator shows both sides: how much smaller your pay gets and how much bigger your super gets.
Salary sacrifice and your concessional cap
Salary sacrifice counts towards your concessional contributions cap, which is $32,500 in 2026–27. Your employer's super guarantee counts too. On a $90,000 salary, your employer pays $10,800, leaving $21,700 of room. If your total super balance is under $500,000 you may be able to go higher using unused cap from earlier years with the carry-forward calculator.
Tax saving by income, 2026–27
| Taxable income | Marginal rate + Medicare | Tax in super | Saving per $1,000 |
|---|---|---|---|
| $18,201 – $45,000 | 17% | 15% | about $20* |
| $45,001 – $135,000 | 32% | 15% | $170 |
| $135,001 – $190,000 | 39% | 15% | $240 |
| $190,001 – $250,000 | 47% | 15% | $320 |
| Over $250,000 | 47% | 30% (Division 293) | $170 |
*Below $37,000 the low income super tax offset refunds the 15% contributions tax, up to $500.
Things to check first
- Ask your employer. Not every employer offers salary sacrifice, and some charge admin fees.
- Make sure the money can wait. Super is locked away until you reach preservation age (60) and meet a condition of release.
- Check other income tests. Salary sacrifice is added back for things like HELP repayments, family tax benefit and the Medicare levy surcharge, so it may not lower those.
- Consider a personal deductible contribution instead. You get the same tax treatment by contributing from your bank account and claiming a deduction, which gives you more control over timing.
Frequently asked questions
Is salary sacrifice worth it in 2026–27?
For most people earning between $45,001 and $250,000, yes. Each $1,000 you sacrifice saves between $170 and $320 in tax, depending on your income. Below about $45,000 the saving is small, and the money is locked in super until you retire.
Does my employer still pay 12% super if I salary sacrifice?
Yes. Since 2020 employers must calculate the super guarantee on your salary before any salary sacrifice, so sacrificing doesn't reduce your employer contributions.
What is the maximum I can salary sacrifice?
Your salary sacrifice plus employer super and any deductible personal contributions should stay under the concessional cap of $32,500 for 2026–27, unless you have unused carry-forward amounts and a total super balance under $500,000.
What happens if I go over the concessional cap?
The excess is added to your taxable income and taxed at your marginal rate, with a 15% offset for the tax already paid by your fund. You can choose to release some of the excess from super.
Does salary sacrifice reduce my HELP repayments?
No. Reportable employer super contributions, which include salary sacrifice, are added back when working out your repayment income for HELP debts.
Is salary sacrifice better than a personal deductible contribution?
The tax result is the same. Salary sacrifice is automatic and smooths the saving through the year. A personal deductible contribution lets you decide the amount after you know your income, but you must lodge a notice of intent with your fund.
About this calculator
This calculator gives general information only. It doesn't consider your personal circumstances and isn't financial or tax advice. It assumes you're an Australian tax resident and uses 2026–27 rates published by the ATO. Check your figures in myGov and speak to a registered tax agent or licensed financial adviser before acting. Your inputs stay in your browser and are never sent anywhere.