Salary sacrifice super calculator 2026-27
This salary sacrifice super calculator shows the change in take-home pay, tax saved and extra super, and checks the $32,500 concessional cap for 2026-27. It uses ATO tax rates for Australian residents (opens in a new tab). Sacrificing $8,000 from a $120,000 salary saves $2,560 in income tax and Medicare levy.
The link carries the numbers you entered, so anyone who opens it sees the same result.
Income tax and Medicare levy saved a year
$2,560
Breakdown
| Salary before sacrifice | $120,000 |
|---|---|
| Salary sacrificed a year | $8,000 |
| Taxable income after sacrifice | $112,000 |
| Income tax and Medicare levy without sacrifice | $28,920 |
| Income tax and Medicare levy with sacrifice | $26,360 |
| Take-home pay a year without sacrifice | $91,080 |
| Take-home pay a year with sacrifice | $85,640 |
| Employer super at 12%, on the full salary | $14,400 |
| Sacrifice after 15% contributions tax | $6,800 |
| Income tax and Medicare levy saved | $2,560 |
- Take-home per pay without sacrifice
- $3,503.08
- Take-home per pay with sacrifice
- $3,293.85
- Fall in take-home per pay
- $209.23
- 15% contributions tax a year
- $1,200
- Extra super a year, after that tax
- $6,800
- Net gain a year
- $1,360
- Extra super, less the fall in take-home pay and any extra Division 293 tax.
- Concessional cap check
- $22,400 of $32,500, with $10,100 left
- Division 293 tax
- Doesn't apply on this salary
Salary sacrifice is an agreement with your employer to pay part of your pre-tax salary into superannuation. The sacrificed amount is taxed at 15% in the fund instead of at your marginal rate.
| Step | Amount | Running total |
|---|---|---|
| Goes into your fund$8,000 less 15% contributions tax | +$6,800 | $6,800 |
| Comes out of your take-home pay$8,000 less the tax saved | -$5,440 | $1,360 |
| Super rises by more than your pay falls | $1,360 | |
15% contributions tax vs your marginal rate
Salary sacrifice saves tax when your marginal rate, including the Medicare levy, is above 15%. The bigger the gap, the more each dollar gains.
| Taxable income before sacrificing $1,000 | Tax saved on $1,000 | Contributions tax | Net gain per $1,000 |
|---|---|---|---|
| $40,000 | $220 | $150 | $70 |
| $60,000 | $335 | $150 | $185 |
| $120,000 | $320 | $150 | $170 |
| $160,000 | $390 | $150 | $240 |
| $200,000 | $470 | $150 | $320 |
Why $60,000 gains more than $120,000
Between $45,000 and $66,667, the low income tax offset (LITO) phases out at 1.5 cents per dollar. That lifts the marginal rate to 33.5%, above the 32% that applies at $120,000.
At $40,000 the gain is small. A sacrifice can't bring you into the low income super tax offset, because adjusted taxable income adds it back.
Your employer's super counts towards the concessional cap
The $32,500 concessional cap (opens in a new tab) for 2026-27 covers employer super guarantee (SG), salary sacrifice and personal contributions you claim as a deduction. You need to add them together.
- Room left under the cap with $8,000 sacrificed on $120,000
- $10,100
- The most this employee could sacrificeSaves $5,792 in tax and cuts take-home pay by $12,308
- $18,100
SG keeps being worked out on the full $120,000, because qualifying earnings include sacrificed amounts. Count it at that level when you check the cap.
Going over the cap, and timing near 30 June
Contributions above the cap are taxed at your marginal rate, less a 15% offset for the tax the fund already paid.
Contributions count towards the cap in the year your fund receives them. Under Payday Super, SG is due within 7 business days after payday, so SG for a late-June payday can arrive in July and count towards the next year's cap. If you sacrifice close to the limit, leave some margin for that timing.
Unused cap from up to 5 earlier years may be available through the ATO's concessional contributions cap rules (opens in a new tab). You need a total super balance below $500,000 on 30 June of the year before.
What happens to take-home pay
Take-home pay falls by the sacrifice less the tax saved. Your employer withholds tax on the reduced salary, so the saving shows up each payday and you don't wait for a tax return.
| $8,000 a year sacrificed from $120,000 | Weekly | Fortnightly | Monthly |
|---|---|---|---|
| Sacrifice each pay | $153.85 | $307.69 | $666.67 |
| Fall in take-home pay | $104.62 | $209.23 | $453.33 |
Fortnightly PAYG withholding on $120,000 is $1,114. On the reduced $112,000 it's $1,016, which is $98 less each fortnight.
The trade-off is cash now for super later, because the money stays in the fund until you meet a condition of release.
| $6,800 a year kept in super | Future dollars | Today's dollars |
|---|---|---|
| After 10 years | $90,263 | $70,514 |
| After 20 years | $254,213 | $155,139 |
Division 293 above $250,000
If your income plus concessional contributions is above $250,000, Division 293 tax adds another 15% to contributions. Once income alone passes $250,000, every contributed dollar is caught, and the gain from sacrificing shrinks from 32 cents to 17 cents per dollar at the top rate.
Salary sacrifice doesn't change whether Division 293 applies. The test adds your contributions back to your income, so moving pay into super leaves the total the same.
| Step | Amount | Running total |
|---|---|---|
| SG at 12% | $28,800 | |
| Division 293 total, with or without the sacrifice | $268,800 | |
| Division 293 tax: 15% of the $18,800 excess, with or without the sacrifice | $2,820 | |
| Income tax and Medicare levy saved by the sacrifice | $1,739 | |
| Contributions tax on the sacrifice | $555 | |
The Division 293 tax calculator works out the extra tax for your income.
Salary sacrifice vs a personal deductible contribution
Both routes give the same tax result for the same amount. The difference is timing and paperwork.
$8,000 on a $120,000 salary
Salary sacrifice
- Where the money comes from
- Your pay, before tax
- Tax saving
- $2,560
- When you see the saving
- Each payday
- Counts towards the $32,500 cap
- Yes
Personal deductible contribution
- Where the money comes from
- Your bank account
- Tax saving
- $2,560
- When you see the saving
- After you lodge your tax return
- Counts towards the $32,500 cap
- Yes
A personal contribution suits people whose employer doesn't offer salary sacrifice, or who want to decide the amount near year end. It has to reach the fund by 30 June to count for that year.
You don't need a notice of intent for salary sacrifice. That form is only for personal contributions you claim as a tax deduction. The super calculator shows what a regular contribution could grow to by retirement.
Salary sacrifice questions: SG on reduced salary, HECS and Centrelink
Still stuck? Email us
Last reviewed
How do I salary sacrifice super?
Ask your employer about a salary sacrifice agreement. Set an amount per pay, such as $307.69 a fortnight for $8,000 a year, and check SG plus the sacrifice stays under the $32,500 concessional cap. Ask when the money reaches your fund too, because that decides which year's cap it counts towards.
Does my employer still pay SG on the sacrificed amount?
Yes. Qualifying earnings include salary you sacrifice to super if it would otherwise be qualifying earnings, so SG is worked out on your pre-sacrifice pay. On a $120,000 salary with $8,000 sacrificed, SG stays at $14,400.
Does salary sacrifice reduce my HECS repayment?
No. HELP repayment income adds back reportable super contributions, so on $120,000 with $8,000 sacrificed, it stays $120,000 and the 2026-27 repayment is $7,570.80. Withholding uses the lower pay, so only about $6,396 is withheld, which can leave about $1,175 to pay at tax time.
Can I get the low income super tax offset as well?
Yes, if your income is $37,000 or less. The offset pays 15% of your concessional contributions back to your fund, up to $500. On a $20,000 salary with $1,000 sacrificed, it goes from $360 to $500. Reportable super contributions count in the income test, so a sacrifice can't bring you under the limit.
Does salary sacrifice affect Centrelink payments?
Often, yes. Services Australia counts reportable super contributions in adjusted taxable income, used for Family Tax Benefit, Child Care Subsidy and Parental Leave Pay. An $8,000 sacrifice can lower your taxable income without lowering the income used for those payments.
Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.
Keep going
Sources
- ATO: Tax rates, Australian residents (opens in a new tab)
- ATO: Contributions caps (opens in a new tab)
- ATO: Concessional contributions cap (opens in a new tab)
- ATO: Division 293 tax (opens in a new tab)
- ATO: Study and training support loans rates and repayment thresholds (opens in a new tab)
Provisional: the Medicare levy low-income thresholds ($28,011 and $35,013) are carried over from the previous financial year until the ATO publishes the 2026-27 figures.