Salary Sacrifice Calculator
See how salary sacrificing into super can save you tax and boost your retirement savings. Enter your gross salary and sacrifice amount to compare your take-home pay and super balance with and without salary sacrifice.
Your Details
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Comparison
Without Sacrifice
Taxable Income$100,000
Income Tax$20,520
LITO−$0
Medicare Levy$2,000
Total Tax$22,520
Take-Home Pay$77,480
Super
Employer SG$12,000
Salary Sacrifice$0
Contributions Tax (15%)−$1,800
Total in Super$10,200
With Sacrifice
Taxable Income$90,000
Income Tax$17,520
LITO−$0
Medicare Levy$1,800
Total Tax$19,320
Take-Home Pay$70,680
Super
Employer SG$12,000
Salary Sacrifice$10,000
Contributions Tax (15%)−$3,300
Total in Super$18,700
Tax Saving
$3,200
Extra in Super
$8,500
Net Benefit
$1,700
Take-Home Reduction
$6,800
Total Benefit Comparison (Take-Home + Super)
Without Sacrifice$87,680
With Sacrifice$89,380
Take-Home Pay
Super (net of 15% tax)
Overall you are $1,700 better off with salary sacrifice
Your take-home drops by $6,800, but your super increases by $8,500 (after 15% contributions tax).
Want to see how salary sacrifice affects your pay slip? Use our Pay Calculator to see your fortnightly or weekly take-home pay.
Frequently Asked Questions
What is salary sacrifice into super?
Salary sacrifice is an arrangement with your employer to redirect part of your pre-tax salary into your superannuation fund instead of receiving it as take-home pay. Because the money goes into super before income tax is applied, it is only taxed at 15% (the concessional super contributions tax rate) rather than your marginal tax rate, which can be up to 45% plus the Medicare levy.
What is the concessional contributions cap?
The concessional (before-tax) contributions cap is $30,000 per year from 2024-25 onwards. This cap includes all concessional contributions: employer Superannuation Guarantee (SG) contributions, salary sacrifice amounts, and any personal contributions you claim a tax deduction for. Contributions exceeding the cap are taxed at your marginal tax rate plus an excess concessional contributions charge.
How is salary sacrifice taxed at 15%?
When you salary sacrifice into super, the amount is classified as a concessional (before-tax) contribution. Your super fund pays 15% contributions tax on this amount. For most employees earning above the tax-free threshold, this 15% rate is lower than their marginal income tax rate (which ranges from 16% to 45%), resulting in a net tax saving. Note that individuals with combined income and concessional super contributions above $250,000 may pay an additional 15% Division 293 tax.
How does salary sacrifice reduce my tax?
Salary sacrifice reduces your taxable income because the sacrificed amount is redirected to super before income tax is calculated. For example, if you earn $100,000 and sacrifice $10,000, your taxable income drops to $90,000. You pay income tax on the lower amount, while the $10,000 in super is taxed at only 15%. The difference between your marginal tax rate and 15% is your tax saving.
Does salary sacrifice affect my employer super contributions?
No. Employer Superannuation Guarantee (SG) contributions are calculated on your ordinary time earnings (your full gross salary), not on the reduced amount after salary sacrifice. Your employer still contributes the SG rate (12% from 2025-26) based on your full salary. However, both employer SG and salary sacrifice amounts count towards your $30,000 concessional contributions cap.