Salary Sacrifice Calculator

What is Salary Sacrifice?

Salary sacrifice (also called salary packaging) is an arrangement where you agree to receive less pre-tax salary in exchange for your employer contributing the difference to your super fund.

How this calculator works

Super contributions are taxed at 15% (the concessional rate) instead of your marginal tax rate. If your marginal rate is 37%, you save 22 cents in tax on every dollar sacrificed. This calculator shows the exact dollar benefit by computing your take-home pay and super both with and without salary sacrifice. The stacked bar chart compares the two scenarios side by side. Note: total concessional contributions (employer SG + salary sacrifice) are capped at $30,000 per year in 2025-26.

The Tax Maths

Super contributions are taxed at 15% in the fund instead of your marginal rate. Tax savings table: 16% rate = 1¢ saved per dollar (negligible — don't bother below 30% marginal); 30% rate = 15¢; 37% rate = 22¢; 45% rate = 30¢. For a $50k salary sacrifice at 37% rate: tax saving = $11,000/yr, going into your super. Over 20 years compounded at 7%, this becomes ~$450,000 of extra retirement wealth from tax savings alone.

The Concessional Cap

Total concessional contributions across ALL sources cap at $30,000/yr (FY 2025-26). Includes: employer SG (12%), salary sacrifice, personal contributions for which you claim a deduction. Exceeding the cap triggers extra tax — the excess gets taxed at your marginal rate (with a 15% offset for tax already paid in the fund), plus interest charges. Most people don't get close to the cap; high earners need to actively monitor.

Carry-Forward Unused Cap

Since 2018-19 you can carry forward UNUSED concessional cap for up to 5 years (i.e. use it later) — provided your Total Super Balance was under $500,000 at 30 June of the prior year. Powerful for people with career breaks, parental leave, or self-employed periods. Example: returning to work after 2 years off, you could potentially make $80k+ of concessional contributions in one year using carry-forward space.

Division 293 for High Earners

If your income + concessional contributions exceeds $250,000 in a year, an EXTRA 15% tax applies to your concessional contributions (Division 293, ITAA 1997). Total fund tax: 15% + 15% = 30%. Still better than the personal marginal rate of 47% (45% + 2% Medicare) at that income level. Salary sacrifice remains worthwhile, just less spectacularly so. Div 293 doesn't reduce the cap, just adds tax.

Beyond Super: Other Sacrifice Items

Novated car lease (especially EVs — FBT exempt under LCT $91,387 for 2024-25). Portable electronic devices (laptop, phone primarily for work). Professional memberships, subscriptions, self-education. PUBLIC SECTOR / NFP additional items: living expenses, mortgage payments, rent — but capped at $9,010 grossed-up cap (~$15,900 actual expenses) per FBT year. Most private sector employees can only sacrifice into super + novated lease.

Trade-offs to Consider

(1) Money locked in super until age 60 — illiquid for at least 5-30 years depending on your age. (2) Reduces assessable income, which CAN reduce family benefits (FTB, CCS) and Medicare Levy Surcharge — usually a benefit, but check thresholds. (3) Reportable Employer Super Contributions (RESC) ARE added back for many means-tested benefits — partially undoes point (2). (4) If you're salary-sacrificing for FHSS, you can release up to $50,000 of contributions + earnings later for a first home deposit.

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.