Salary sacrificing means redirecting some of your before-tax salary into your super fund instead of your bank account. The trade-off: less cash today, more in super (taxed at 15% instead of your marginal rate).
What this calculator does
Enter your salary and a salary-sacrifice amount, and the calculator shows:
- Annual tax saving vs taking the full amount as salary
- What lands in your super account (after the 15% contributions tax)
- Take-home pay impact — how much your fortnightly/monthly pay drops
- Net benefit — total wealth gain across cash + super
Using the calculator
- Go to Calculators in the sidebar and select Salary Sacrifice.
- Enter your annual gross salary.
- Enter the annual amount you want to salary sacrifice.
- The calculator instantly shows the side-by-side comparison.
Why it works
Salary sacrifice is tax-effective because:
- The amount you sacrifice is taken from pre-tax income, so you pay no marginal income tax on it
- Inside super, the contribution is taxed at a flat 15% (concessional rate)
- If your marginal rate is 30%, 37%, or 45%, the difference is your tax saving
Example: $10,000 salary sacrificed at a 37% marginal rate saves $3,700 in income tax. Super pays 15% ($1,500) on the contribution. Net benefit: $2,200 more in super than if you'd taken it as salary and saved it post-tax.
Concessional contribution cap
There's a yearly limit on how much you can salary sacrifice into super at the concessional rate — currently $30,000 per year (FY2025-26). This cap includes employer contributions, so check your existing employer super before deciding the maximum to sacrifice.
Going over the cap means the excess is taxed at your marginal rate plus an interest charge.
Note: Salary sacrificed funds are locked away until preservation age (typically 60). Don't sacrifice money you'll need for short-term goals like a deposit or emergency fund.