Salary Sacrifice Calculator Australia 2026-27
Use this salary sacrifice calculator australia tool to see exactly what sacrificing into super costs your take-home pay — and how much more lands in your super than you gave up.
Last updated: July 2026 · Income Tax Rates Act 1986 · ITAA 1997 · Medicare Levy Act 1986 · Moneysmart (ASIC) · FY 2026–27
Got your number? Two things worth checking next
→ The caps that bound the strategy — every 2026–27 contribution cap and threshold in one table. → Your full take-home picture — tax, levy and offsets on your whole salary.What is Salary Sacrifice?
Salary sacrifice into super means asking your employer to redirect part of your before-tax pay straight into your super fund. That slice never touches your payslip as income, so it skips income tax and the Medicare levy entirely; instead the fund taxes it at a flat 15% on the way in. The arbitrage is the whole strategy: if your marginal rate is 30%, 37% or 45%, every sacrificed dollar is taxed at 15 cents instead — and the difference compounds inside super until retirement.
The trade is liquidity. The money is preserved: you generally can’t touch it until you’re 60 and retired (or 65). Salary sacrifice is deferred pay at a tax discount, not extra pay — which is why the calculator’s headline number is the honest one: how much further ahead your super ends up compared with what your take-home actually gave up this year.
Everything runs inside the $32,500 concessional cap, which your employer’s compulsory 12% already partly fills. The calculator tracks your cap usage as you type; if you haven’t used your full cap in recent years, carry-forward rules can absorb an over-cap year (balance under $500,000 test applies) — check your available space in myGov before committing to a big number.
The Rates Behind the Calculation
| Component | 2026–27 Value | Role in the sum |
|---|---|---|
| Income tax brackets | 15% / 30% / 37% / 45% | What the sacrificed dollars would have paid |
| Medicare levy | 2% | Also avoided on sacrificed dollars |
| Contributions tax | 15% | What the fund takes on the way in |
| Concessional cap | $32,500/yr | SG 12% + sacrifice + deductible contributions |
| Division 293 threshold | $250,000 | Above it, contributions tax doubles to 30% |
Worked example: on $95,000, sacrificing $10,000 saves $3,200 of income tax and levy (32% marginal), the fund takes $1,500, and super ends up $1,700 ahead of the take-home pay you gave up.
When It Works — and When It Doesn’t
The strategy scales with your marginal rate. In the 45% bracket, a sacrificed dollar keeps 85 cents instead of 55 — a 30-cent gain per dollar. In the 30% bracket the gain is 15–17 cents (the Medicare levy adds to the saving). But below the tax-free-plus-LITO zone the sums invert: if your marginal rate is under 15%, sacrifice actually costs you money — the fund taxes what the tax office wouldn’t have. That’s why the calculator can show a negative benefit on low salaries: it’s not a bug, it’s the honest answer. From 60, the same top-up can often be done more flexibly through a transition to retirement strategy — see our TTR guide.
Frequently Asked Questions
Does salary sacrifice reduce my employer’s 12% super?
No. Since 2020 the law calculates the super guarantee on your pre-sacrifice ordinary earnings, and sacrificed amounts can’t count toward the employer’s obligation. Your 12% stays anchored to the full salary.
Is there a minimum or maximum I can sacrifice?
No legal minimum — the practical ceiling is the $32,500 concessional cap minus your employer’s contributions, plus any carry-forward space from the previous five years. Your employer must agree to the arrangement (most do), and it should be set up in writing before the pay is earned — you can’t sacrifice pay retrospectively.
Does sacrificing lower my Medicare Levy Surcharge income?
No — that’s a common trap. Reportable super contributions are added back for MLS, Division 293 and several benefit tests. Salary sacrifice reduces your income tax, not your “income for surcharge purposes”.
Salary sacrifice or personal deductible contributions?
Mathematically identical (both concessional, both 15%), practically different: sacrifice is automatic each payday, while personal contributions you deduct at tax time offer flexibility and suit irregular income. Same cap covers both.
Also in Australia:
📋 Rates verified — Official sources: Income Tax Rates Act 1986 · ITAA 1997 (LITO s 61-115) · Medicare Levy Act 1986 · Moneysmart (ASIC) — Super contributions
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the ATO, ASIC or the Australian Government, and is not responsible for decisions you make based on it.
