How does salary sacrifice into super work?

Salary sacrifice into super is an arrangement where you agree with your employer to redirect a portion of your pre-tax salary directly into your superannuation fund. Because the money is contributed before income tax is deducted, you pay only 15% contributions tax in super instead of your marginal tax rate (which could be 30%, 37%, or 45%). This can result in significant tax savings while boosting your retirement savings.

What is the concessional contributions cap?

The concessional contributions cap for 2026-27 is $32,500 per financial year. This cap includes all concessional (before-tax) contributions: employer Superannuation Guarantee (SG) contributions, salary sacrifice amounts, and personal deductible contributions. If you exceed the cap, the excess is included in your assessable income and taxed at your marginal rate (with a 15% tax offset).

How much tax do I save with salary sacrifice?

Your tax saving depends on your marginal tax rate. For example, if your marginal rate is 30% and you sacrifice $10,000, you save 30% income tax on that amount ($3,000) but pay 15% contributions tax in super ($1,500), giving a net saving of $1,500. The higher your marginal tax rate, the greater the benefit. Those in the tax-free threshold ($0-$18,200) do not benefit from salary sacrifice.

Can I salary sacrifice if I have HECS?

Yes, you can salary sacrifice into super if you have a HECS-HELP debt. However, it is important to note that salary sacrifice does not reduce your HECS repayment income. The ATO calculates your repayment income using your total income including salary sacrifice amounts, so your HECS repayment obligation will not change. Salary sacrifice still provides a tax benefit on the sacrificed amount.

Salary Sacrifice Super Calculator

See how much tax you could save by salary sacrificing into super. Includes concessional cap checks and 2026-27 tax rates.

Last verified: 2 August 2026

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