Salary Sacrifice Super Calculator 2025-26

Salary sacrifice is one of the most effective ways to reduce your tax bill and boost your retirement savings. By directing part of your pre-tax salary into your super fund, you pay just 15% contributions tax on that amount instead of your marginal income tax rate (which could be up to 47% including Medicare levy).

How it works

You make an agreement with your employer to redirect a portion of your salary to your super fund before income tax is calculated. This reduces your taxable income and therefore your income tax. The sacrificed amount is taxed at 15% inside the super fund as a concessional contribution.

The concessional contributions cap

For 2025-26, the concessional contributions cap is $30,000 per financial year. This cap covers all before-tax super contributions combined:

• Employer Superannuation Guarantee (SG) at 12%
• Salary sacrifice contributions
• Personal contributions claimed as a tax deduction

For example, if your salary is $85,000, your employer contributes $10,200 in SG. That leaves $19,800 of cap space for salary sacrifice. Going over the cap means the excess is added to your assessable income and taxed at your marginal rate, plus an interest charge.

Tax saving by bracket

• $18,201 - $45,000 (16% bracket): Save 3% per dollar sacrificed (16% + 2% Medicare - 15% super tax)
• $45,001 - $135,000 (30% bracket): Save 17% per dollar sacrificed
• $135,001 - $190,000 (37% bracket): Save 24% per dollar sacrificed
• $190,001+ (45% bracket): Save 32% per dollar sacrificed

Important considerations

• Money in super is locked until you reach preservation age (currently 60 for most people)
• Salary sacrifice can affect government benefits, Centrelink payments, and HECS-HELP repayments
• Division 293 tax applies an extra 15% on concessional contributions if your income plus contributions exceeds $250,000
• You must arrange salary sacrifice with your employer before the income is earned — you cannot sacrifice income already received