Salary Sacrifice Calculator
Calculate tax savings from salary sacrificing into super. See how pre-tax contributions can boost your retirement savings while reducing your tax bill.
What is Salary Sacrifice?
Salary sacrifice (also called salary packaging) is an arrangement where you give up part of your pre-tax salary in exchange for benefits - commonly extra super contributions. Since super contributions are taxed at just 15%, this can be much lower than your marginal tax rate of 30-45%.
Without Salary Sacrifice
Earn $10,000 → Pay ~$3,200 tax (32%) → Keep $6,800
With Salary Sacrifice to Super
Earn $10,000 → Pay $1,500 tax (15%) → Super gets $8,500
Salary Sacrifice Impact
Without Salary Sacrifice
With Salary Sacrifice
Annual Tax Saved
$1,950
Take-Home Reduction
-$6,550
Extra to Super
$8,500
Net Benefit
$1,950
Super Comparison
Projected Super at Retirement (7% return)
Without Salary Sacrifice
$1,045,000
With Salary Sacrifice
$1,395,000
+$350,000 extra at retirement!
Contribution Caps — FY 2025-26 & FY 2026-27
Concessional Cap
$30,000 (FY 2025-26) → $32,500 from 1 Jul 2026. Includes employer SG + salary sacrifice. Taxed at 15% in super.
Carry-Forward Rule
Unused cap from the past 5 years can be used if your super balance is under $500k at 30 June of the prior year.
Salary Sacrifice Strategies
✅ When It Makes Sense
- • You're in a high tax bracket (30%+)
- • You have unused cap from previous years
- • You're approaching retirement
- • You can afford reduced take-home pay
- • You want to build wealth tax-effectively
❌ When to Reconsider
- • You're in a low tax bracket (16%)
- • You have high-interest debt
- • You need access to funds soon
- • You're already at concessional cap
- • You have inadequate emergency fund
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