Salary Sacrifice Calculator
See how much tax you save by salary sacrificing extra contributions into your super fund.
How Salary Sacrifice into Super Works
Salary sacrifice (also called salary packaging) means redirecting part of your pre-tax salary into your superannuation fund. Because super contributions are taxed at just 15% (the contributions tax) rather than your marginal income tax rate, you pay less tax overall.
The Tax Advantage
The benefit is simple: the difference between your marginal tax rate and the 15% contributions tax. For example:
- If you're on the 37% marginal rate and sacrifice $10,000: you save $3,700 in income tax, pay $1,500 in super contributions tax — a net saving of $2,200
- If you're on the 45% marginal rate and sacrifice $10,000: you save $4,500 in income tax, pay $1,500 — a net saving of $3,000
The Concessional Contributions Cap
The total of employer SG contributions (11.5% in 2024–25) plus salary sacrifice cannot exceed $30,000 per year. Amounts above the cap are included in your assessable income and taxed at your marginal rate (with a 15% tax offset to avoid double-counting). Always check how much room you have under the cap before sacrificing.
Carry-Forward Provisions
If your super balance was below $500,000 at 30 June of the prior year, you can carry forward unused concessional cap space from up to five previous years. This allows larger catch-up contributions — useful after career breaks or periods of lower income.
The Trade-Off
You can't access sacrificed money until you meet a superannuation condition of release (generally age 60 and retiring, or age 65 regardless of employment status). Consider your cash flow needs and whether locking up funds in super makes sense for your situation.