About the Australia Salary Sacrifice Calculator
This calculator shows what salary sacrificing into superannuation really costs you and what it saves. Enter your salary and how much you want to sacrifice each year, and it compares your take-home pay with and without the arrangement, the 15% contributions tax your fund deducts, and the overall tax you save once both sides are counted.
It is aimed at Australian employees weighing up a salary sacrifice agreement, deciding how much to put in before 30 June, or checking how close they are to the concessional contributions cap. Because employer super guarantee (12%) also counts towards the cap, the calculator adds it in and warns you if the total would go over.
Figures use the ATO resident tax rates for 2026–27 (the 16% rate cut to 15% from 1 July 2026) or 2025–26, the low income tax offset, the 2% Medicare levy (with the single low-income reduction between A$28,011 and A$35,013) and the concessional cap of A$32,500 for 2026–27 (A$30,000 for 2025–26). Division 293 tax is applied when income plus concessional contributions exceed A$250,000. Family Medicare thresholds, the Medicare levy surcharge and HELP repayments are not modelled.
With the default inputs, the overall tax saving per year is A$1,700.00. Change any value above to recalculate instantly.
How to use the australia salary sacrifice calculator
- 1Enter your annual salary before any sacrifice, excluding employer super.
- 2Enter how much salary you plan to sacrifice into super over the year.
- 3Choose the income year (2026–27 or 2025–26).
- 4Untick the Medicare levy if you hold an exemption.
- 5Compare take-home pay, contributions tax and your overall saving, and check the cap remaining.
Formula and method
Salary sacrifice moves pre-tax salary (X) into super. Your taxable income falls from S to S − X, so income tax (resident rates minus the low income tax offset) and the 2% Medicare levy both fall. Inside the fund the sacrificed amount is a concessional contribution taxed at 15%, or 30% on the part caught by Division 293 when income plus concessional contributions exceed A$250,000.
The overall saving is the personal tax you avoid minus the contributions tax your fund pays. Employer super guarantee is 12% of your earnings before the sacrifice, up to the maximum contribution base (A$270,830 a year in 2026–27), and employers cannot reduce SG because you sacrifice, and SG plus sacrifice must stay under the concessional cap: A$32,500 in 2026–27 and A$30,000 in 2025–26.
- S
- Annual salary before sacrifice
- X
- Amount salary sacrificed into super
- ML
- Medicare levy (2% of taxable income, phased in between A$28,011 and A$35,013)
- CC
- Concessional contributions (employer SG + salary sacrifice)
Worked examples
A$100,000 salary, A$10,000 sacrificed in 2026–27
Without sacrifice, tax is A$4,020 + 30% of A$55,000 = A$20,520 plus A$2,000 Medicare, leaving A$77,480. Sacrificing A$10,000 cuts taxable income to A$90,000, saving 32% (A$3,200), while the fund pays 15% (A$1,500), so you are A$1,700 a year better off. SG of A$12,000 plus the A$10,000 sacrifice leaves A$10,500 of the A$32,500 cap.
A$200,000 salary, A$6,000 sacrificed in 2025–26
All A$6,000 comes off income taxed at 45% plus 2% Medicare, saving 47% or A$2,820. The fund pays 15% (A$900), a net saving of A$1,920. Employer SG of A$24,000 plus A$6,000 exactly fills the A$30,000 cap for 2025–26, and income plus contributions (A$224,000) stays under the Division 293 threshold.
A$40,000 salary, A$2,000 sacrificed
Dropping taxable income from A$40,000 to A$38,000 saves 15% tax (A$300) and 2% Medicare (A$40), and raises the low income tax offset from A$575 to A$675 (another A$100). Against A$300 of contributions tax the net gain is only A$140 a year.
Frequently asked questions
What is the concessional contributions cap for 2026–27?+
The general concessional cap rises to A$32,500 from 1 July 2026 after indexation to AWOTE. It was A$30,000 from 2024–25 to 2025–26. Employer super guarantee, salary sacrifice and personal contributions you claim a deduction for all count towards it.
Does salary sacrifice reduce my employer super guarantee?+
No. Since 1 January 2020 employers must calculate super guarantee on your ordinary time earnings before salary sacrifice, and sacrificed amounts cannot be counted towards the employer’s SG obligation.
How is salary sacrifice taxed in super?+
Sacrificed amounts are concessional contributions taxed at 15% when they arrive in your fund. If your income plus concessional contributions exceed A$250,000, Division 293 adds another 15% on the excess, up to the contribution amount.
Is salary sacrifice worth it on a low income?+
Usually not below about A$45,000. Your personal rate (15% plus Medicare in 2026–27) is close to the 15% contributions tax, and earners under about A$37,000 may get the low income super tax offset refunding contributions tax anyway. After-tax contributions with the government co-contribution can work better.
Do I still pay the Medicare levy on salary sacrificed amounts?+
No. Salary sacrificed to super is not part of your assessable income, so it escapes both income tax and the 2% Medicare levy. It is, however, reported as reportable super contributions and can affect some income tests.
What happens if I exceed the concessional cap?+
Excess concessional contributions are added to your assessable income and taxed at your marginal rate, with a 15% tax offset for the contributions tax already paid. You can release the excess from super, and unused cap from the previous five years may be carried forward if your total super balance was under A$500,000.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.