Salary Sacrifice & Super Calculator

Estimate your annual tax saving, super boost, and retirement balance from salary sacrificing — modelled over your actual career span.

Annual salary

Your total pre-tax salary before any sacrifice.

Annual salary sacrifice to super

How much of your pre-tax salary to redirect into super each year.

Employer SGC rate

Your employer's compulsory contribution rate — used to model total super and check the concessional cap.

Current age

Retirement age

Tax uses FY 2025-26 brackets with 2% Medicare levy. Super projection assumes 7% p.a. balanced fund return, annual compounding, and constant contributions to retirement age. Does not include LITO, contributions tax on employer SGC, fund fees, or HECS. General guidance only — not financial advice.

Super balance at retirement — with vs without salary sacrifice

37-year projection (age 30 to 67) at 7% p.a.

With $5,000/yr sacrificeEmployer SGC only (no sacrifice)

Salary sacrifice adds $681,434 to your super by age 67 — at a net cost of $3,275/yr in take-home pay, saving $975/yr in tax.

How salary sacrifice builds superannuation

What is salary sacrifice to super?

Salary sacrifice lets you redirect part of your pre-tax salary into superannuation before income tax is applied. Instead of paying your marginal rate on that money, it enters your super fund and is taxed at just 15% — the concessional contributions rate. For anyone earning above $45,000, this gap between marginal tax and 15% creates a real, annual cash saving that also builds your retirement balance.

The Australian superannuation system

Super is Australia's compulsory retirement savings system. Your employer is required to contribute at least 12% of your ordinary time earnings (SGC) into a super fund on your behalf. Salary sacrifice goes on top of this. Together, concessional contributions — your sacrifice plus employer SGC — are capped at $30,000 per financial year. Super is invested and grows tax-advantaged until you reach preservation age (typically 60).

Why compounding inside super matters

Investment earnings inside super are taxed at just 15% (or 10% for capital gains held over 12 months), compared to your marginal rate outside super. This tax advantage compounds year after year. An extra $4,250 per year sacrificed into super, growing at 7% inside the fund, becomes over $174,000 after 20 years. The same money invested outside super would generate far less after tax.

How the tax saving is calculated

The saving comes from the difference between your marginal income tax rate and the 15% contributions tax. On an $85,000 salary (34.5% marginal rate including Medicare), every $1,000 sacrificed saves $345 in income tax but costs $150 in contributions tax — a net $195 saving per $1,000. You also lose $655 in take-home pay, so the true cost of putting $850 into super is just $655.

Frequently asked questions

How much extra super will I have from salary sacrificing?: It depends on how much you sacrifice and how long you keep it up. Sacrificing $5,000 per year on an $85,000 salary sends roughly $4,250 net into your super each year (after 15% contributions tax). If your fund returns 7% p.a., that grows to approximately $174,000 extra in your super after 20 years — on top of your regular employer contributions. Use the projection in this calculator to estimate your personal figure.
What is the concessional contributions cap?: Concessional (pre-tax) contributions — employer SGC plus any salary sacrifice — are capped at $30,000 per financial year for FY 2025-26. If you exceed the cap, the excess is included in your assessable income and taxed at your marginal rate with a 15% tax offset. The calculator flags when your sacrifice plus employer SGC would exceed the cap so you can adjust.
Does salary sacrifice reduce my employer's compulsory super?: Generally no. The Super Guarantee is calculated on your Ordinary Time Earnings (OTE), which is typically your full salary before any sacrifice arrangement. Most agreements leave OTE unchanged, so your employer continues paying SGC on the full amount. A small number of older contracts define OTE differently — check your employment agreement or ask your HR team to confirm.
When does salary sacrifice to super make the most sense?: The higher your marginal income tax rate, the bigger the benefit. If you earn between $45,000 and $135,000 (marginal rate 32.5%), every dollar sacrificed saves 17.5 cents in tax compared to taking it as income. Earn above $135,000 (37%) and the saving rises to 22 cents per dollar. It also makes more sense earlier in your career — more years of compounding amplifies the long-term result significantly.
How does salary sacrifice affect my HECS/HELP repayment?: Salary sacrifice to super reduces your taxable income, which can push your Repayment Income below a higher HECS threshold and lower your mandatory repayment rate. However, the ATO includes Reportable Employer Super Contributions (RESC) when calculating Repayment Income, which limits this benefit for most salary sacrifice arrangements. Use the HECS calculator to model the combined effect.
Do I need my employer's agreement to salary sacrifice?: Yes. Salary sacrifice is a voluntary arrangement that must be agreed to by your employer and documented in writing before the income is earned. Not all employers offer it. Those that do may have rules around minimum sacrifice amounts or how often you can change your arrangement. Ask your HR or payroll team what is available. It cannot be backdated — the arrangement must be in place before you earn the income you want to sacrifice.