๐Ÿ‡ฆ๐Ÿ‡บ Australia

Salary Sacrifice Calculator Australia โ€” FY 2025-26

Calculate how much tax you save by salary sacrificing into super. Checks the $30,000 concessional cap (including 12% employer SG), Division 293 for high earners, and compares sacrifice into super vs investing after tax. Updated for FY 2025-26 Stage 3 tax rates.

$
Your total gross salary before tax
$
Amount per year to sacrifice into super
How often you are paid
โ€”

Try another scenario

How to Use This Calculator

Tax Saving tab

Enter your annual gross salary, the salary sacrifice amount you want to contribute to super, and your pay frequency. The calculator shows your total tax saving, the reduction in take-home pay per pay period, and checks whether you will exceed the $30,000 concessional cap (including employer SG).

Optimal Amount tab

Enter your annual salary and the calculator determines the maximum amount you can salary sacrifice before hitting the $30,000 concessional contributions cap. It shows the tax saving at that amount and your effective tax rate before and after sacrifice.

Sacrifice vs Invest tab

Enter your sacrifice amount, expected investment return, and years to retirement. The calculator compares the projected super balance from salary sacrifice against investing the same amount after tax outside super. Remember: super is locked until age 60.

Share your result

All inputs are encoded in the URL. Click Share to send your exact calculation to your accountant or financial adviser.

The Formula

Employer SG:
SG = Gross Salary × 12%

Concessional Cap Check:
Total Concessional = Employer SG + Salary Sacrifice
Must not exceed $30,000 (FY 2025-26)

Tax Saving:
Income Tax Saved = Tax(Salary) − Tax(Salary − Sacrifice)
Super Tax Paid = Sacrifice × 15%
Net Tax Saving = Income Tax Saved − Super Tax Paid

Take-Home Reduction:
Reduction = Sacrifice Amount − Income Tax Saved

Division 293:
If (Income + Super Contributions) > $250,000:
Additional tax = 15% on concessional contributions (total 30% super tax)

Worked Example

Employee earning $120,000 sacrificing $15,000/year

Step 1: Concessional cap check

Employer SG (12%)$14,400
Salary sacrifice$15,000
Total concessional$29,400 (under $30,000 cap)

Step 2: Tax saving calculation

Without sacrifice: $15K taxed at 37% marginal$5,550 income tax
With sacrifice: $15K taxed at 15% in super$2,250 super tax
Net tax saving$3,300/year

Step 3: Take-home and super impact

Take-home reduction$15,000 − $5,550 = $9,450/year
Net into super$15,000 − $2,250 = $12,750
Concessional cap remaining$600

Verdict: By sacrificing $15,000, you save $3,300 in tax and add $12,750 to your super (after 15% contributions tax). Your fortnightly take-home drops by about $364. The $29,400 total concessional is just under the $30,000 cap.

Salary Sacrifice Key Rates (FY 2025-26)

Income tax brackets (Stage 3)
Taxable Income Tax Rate
$0 – $18,200 0%
$18,201 – $45,000 16%
$45,001 – $135,000 30%
$135,001 – $190,000 37%
$190,001+ 45%

Plus 2% Medicare Levy on total taxable income.

Superannuation contribution limits
Parameter Value
Concessional contributions cap $30,000/year
Non-concessional contributions cap $120,000/year
Super Guarantee (SG) rate 12%
Contributions tax rate 15%
Division 293 threshold $250,000
Carry-forward eligibility Total super balance < $500,000

FAQ

Salary sacrifice redirects a portion of your pre-tax salary directly into your superannuation fund. Instead of receiving the money as take-home pay (where it would be taxed at your marginal rate of up to 45%), the money goes into super where it is taxed at just 15% as a concessional contribution. This creates a tax saving equal to the difference between your marginal tax rate and the 15% super rate. You must arrange salary sacrifice with your employer before the income is earned.
The concessional contributions cap for FY 2025-26 is $30,000 per year. This cap includes ALL concessional contributions: employer Super Guarantee (SG), salary sacrifice, and any personal deductible contributions. For example, if your employer pays $14,400 in SG, you can salary sacrifice up to $15,600 before hitting the cap. If you have unused cap amounts from up to 5 prior years and your total super balance is under $500,000, you can carry forward the unused amounts.
If your total concessional contributions exceed the $30,000 cap, the excess amount is included in your assessable income and taxed at your marginal tax rate. You also receive a 15% tax offset to avoid double taxation (since the super fund already paid 15% contributions tax). Additionally, an interest charge called the Excess Concessional Contributions Charge is applied to account for the time difference between when the super fund paid the 15% tax and when you lodge your tax return. Exceeding the cap is generally a worse outcome than not making the contribution.
Division 293 is an additional 15% tax on concessional super contributions for high-income earners. It applies when your income plus concessional super contributions exceeds $250,000. The additional 15% brings the total super tax rate to 30% on the relevant contributions. "Income" for Division 293 includes taxable income, reportable fringe benefits, and net investment losses. The ATO issues a separate Division 293 assessment after you lodge your tax return. You can pay the tax from your bank account or elect to have it released from your super fund.
No. Once money enters your super fund, it is preserved until you reach preservation age (60) and meet a condition of release (typically retirement). Salary sacrifice contributions cannot be withdrawn early under normal circumstances. Limited early access is available only in cases of severe financial hardship, compassionate grounds (as approved by the ATO), terminal medical conditions, or permanent incapacity. This lock-in is important to consider when choosing between salary sacrifice into super and investing outside super where funds remain accessible.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Salary Sacrifice Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/au/salary-sacrifice-calculator" width="100%" height="600"></iframe>