Salary Sacrifice Calculator Australia
See how much tax you save by salary sacrificing into super — and what it actually costs your take-home pay. Pre-filled with $100,000 salary and $10,000 sacrifice. Adjust to your situation.
Your salary sacrifice
Your salary sacrifice results
Worked example: $100k salary, $10k sacrifice
| Component | Without sacrifice | With $10k sacrifice | Difference |
|---|---|---|---|
| Gross salary | $100,000 | $100,000 | — |
| Salary sacrifice to super | $0 | $10,000 | +$10,000 |
| Taxable income | $100,000 | $90,000 | −$10,000 |
| Income tax | $22,967 | $19,717 | −$3,250 |
| Medicare levy (2%) | $2,000 | $1,800 | −$200 |
| Take-home pay | $75,033 | $68,483 | −$6,550 |
| Tax saving | — | $3,450 | +$3,450 |
| Net cost of sacrifice | — | $6,550 cash reduction (65.5¢ per $1 sacrificed) | |
Sacrificing $10,000 reduces take-home by only $6,550 (not $10,000) because you save $3,450 in tax. Super fund pays 15% contributions tax on the $10,000, so $8,500 net goes into your super.
How does salary sacrifice work in Australia?
Salary sacrifice (also called salary packaging) is an agreement with your employer to receive less take-home pay in exchange for pre-tax benefits — most commonly, contributions to your superannuation fund. Because the sacrificed amount never hits your taxable income, you pay less income tax and Medicare levy. The super fund then pays a 15% contributions tax on the amount received — far less than most employees' marginal tax rate.
How much can you salary sacrifice?
The annual concessional (pre-tax) superannuation cap is $30,000. This cap includes both your employer's mandatory SG contributions and any personal salary sacrifice. If your employer contributes 12% on a $100,000 salary, that's $12,000 in SG — leaving you $18,000 of personal sacrifice room before hitting the cap.
- $30,000 concessional cap includes employer SG + personal sacrifice
- Excess concessional contributions are taxed at marginal rate (with a 15% offset)
- Unused cap amounts can be carried forward for up to 5 years (if total super balance is below $500k)
Tax savings by income bracket
The higher your marginal tax rate, the greater the benefit of salary sacrifice, since super contributions are always taxed at the flat 15% concessional rate regardless of your income:
| Income | Marginal rate | Super tax | Tax saved per $1,000 sacrificed |
|---|---|---|---|
| $45,001 – $120,000 | 32.5% | 15% | $175 |
| $120,001 – $180,000 | 37% | 15% | $220 |
| $180,001+ | 45% | 15% | $300 |
Note: Low-income earners (below ~$37,500) may be eligible for a government co-contribution or a low-income super tax offset (LISTO) of up to $500, which effectively refunds contributions tax.
What happens to my take-home pay?
Your take-home pay decreases by less than the sacrificed amount — because you're not paying income tax or Medicare levy on that portion of your salary. In the example above, sacrificing $10,000 reduces take-home by only $6,550. The remaining $3,450 is offset by your tax saving. The super fund receives $8,500 after the 15% contributions tax.
Salary sacrifice vs personal deductible contributions
Self-employed workers and employees whose employers don't offer salary sacrifice can make personal super contributions and claim a tax deduction via a "Notice of intent to claim" (s290-180). The tax outcome is very similar to salary sacrifice, but you claim the deduction on your tax return rather than at source. The same $30,000 concessional cap applies.
Frequently asked questions
Does salary sacrifice reduce my HECS repayment?
Partially. Salary sacrifice reduces your taxable income — but reportable employer super contributions (RESC) are added back to your HECS repayment income. If your employer sacrifice is reported on your payment summary, the effect on HECS is limited. Speak with a tax advisor for your specific situation.
Can I salary sacrifice anything other than super?
Yes. Common items include laptop computers, novated leases (cars), portable electronic devices, and (for certain employers like hospitals and charities) living expenses and meal cards. Fringe Benefits Tax (FBT) applies to many non-super sacrifices, which can reduce the tax benefit. Super sacrifice is typically the most tax-effective option.
What is the concessional super cap?
$30,000 per year. This includes all concessional contributions: employer SG, salary sacrifice, and personal deductible contributions. Unused cap amounts from the previous 5 years can be carried forward if your super balance is below $500,000.