Salary Sacrifice to Super
FY2025–26 · before vs after sacrifice
How Salary Sacrifice to Super Works
Salary sacrificing means redirecting part of your pre-tax salary into your super fund. Instead of that money being taxed at your marginal rate (up to 47% with Medicare), it's taxed at just 15% going into super — so for most people more of each dollar ends up invested.
The trade-off: your take-home pay drops, and the money is locked away until preservation age. There's also a concessional contributions cap ($30,000 a year for 2025–26, including your employer's compulsory super) — going over it is taxed extra. This calculator shows the take-home you give up versus the tax you save.
Frequently Asked Questions
How much tax does salary sacrifice save?
Sacrificed amounts are taxed at 15% in super instead of your marginal rate. If your marginal rate is 32% (incl. Medicare), you save about 17c per dollar sacrificed. The calculator shows your exact saving.
What is the concessional contributions cap?
For 2025–26 the concessional (pre-tax) cap is $30,000 per year, including your employer's compulsory super. Contributions above the cap are taxed at your marginal rate.
Is salary sacrifice worth it?
For most people on the 30%+ marginal rate it boosts long-term savings because super's 15% tax is lower. The downside is reduced take-home now and the money being preserved until retirement.