Salary Sacrifice Calculator Australia

Estimate how moving part of your before-tax salary into super may change income tax, take-home pay and the amount reaching super.

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Estimated annual change

Income tax saved
$0.00
15% super contributions tax
$0.00
Net amount added to super
$0.00
Take-home pay reduction
$0.00

Income tax only; Medicare levy, HELP repayments and contribution caps are not modelled.

What salary sacrifice means

Salary sacrifice means asking an employer to direct some pay into super before income tax is calculated. The sacrificed amount is usually taxed in the super fund at 15%, while the reduction in taxable salary can lower personal income tax.

How to use it

  1. Enter annual salary before any sacrifice.
  2. Enter the proposed annual amount sent to super.
  3. Compare income tax before and after the sacrifice.
  4. Check the net amount added to super and the reduction in take-home pay.

Worked example

On a $100,000 salary, sacrificing $10,000 reduces taxable salary to $90,000. Under 2025–26 resident rates, income tax falls by $3,000. The super fund deducts $1,500 contributions tax, so $8,500 reaches super and take-home pay falls by about $7,000 before other effects.

Benefits

  • Shows the full tax trade-off instead of only the super contribution.
  • Separates income tax saved from contributions tax.
  • Helps compare different sacrifice amounts.

Frequently asked questions

Does salary sacrifice reduce taxable income?

Usually, an effective arrangement reduces assessable salary because the amount is paid to super before income tax.

Is salary sacrifice tax free?

No. Concessional super contributions are generally taxed at 15%, and extra tax can apply in some circumstances.

Does a contribution cap apply?

Yes. Employer and salary-sacrifice concessional contributions share an annual cap. Check current rules before changing contributions.

Does the calculator include HELP repayments?

No. A lower taxable salary can affect repayment income differently, so use the dedicated HELP calculator and professional advice.

Conclusion

Salary sacrifice can improve the amount saved for retirement, but contribution caps and personal tax circumstances matter. Confirm the arrangement with payroll and a qualified adviser.