2026–27 cap: $32,500 15% contributions tax
Salary Sacrifice Calculator (Super)
Salary sacrificing means giving up part of your salary so it goes into super instead. You skip your marginal tax rate and pay 15% in the fund instead. This calculator shows the tax you save, the contributions tax you pay, and whether you actually come out ahead.
1 Enter your salary and what you sacrifice2 See the net benefit
Step 2 · your result
Net benefit of sacrificing
$0
compared with taking it as salary
- Tax + levy on full salary
- $0
- Tax + levy after sacrificing
- $0
- Tax saved
- $0
- Contributions tax (15%)
- $0
- Total concessional used
- $0
- Cap remaining
- $0
Concessional cap from Australian Taxation Office, checked 11 October 2026. Tax rates from the ATO. General estimate — not tax advice.
Concessional contributions cap by year
| Income year | Concessional cap | Non-concessional cap |
|---|---|---|
| 2026–27 | $32,500 | $130,000 |
| 2025–26 | $30,000 | $120,000 |
| 2024–25 | $30,000 | $120,000 |
| 2023–24 | $27,500 | $110,000 |
| 2022–23 | $27,500 | $110,000 |
The ATO states that concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction. They all share one cap.
When salary sacrificing works — and when it does not
| Your marginal rate | vs 15% contributions tax | Worth it? |
|---|---|---|
| 0% (under $18,200) | 15% is higher | No — you pay more tax |
| 15% | About the same | Neutral |
| 30% | 15% is half | Yes |
| 37% | Less than half | Yes, clearly |
| 45% | A third | Yes, most of all |
The saving is your marginal rate minus 15%, plus the 2% Medicare levy you also avoid. Note the money is locked into super until you meet a condition of release.
Frequently asked questions
How much can I salary sacrifice into super?
Salary sacrifice contributions are concessional contributions, so they count towards the concessional contributions cap. For 2026–27 that cap is $32,500. Employer contributions count towards the same cap, so what is left for salary sacrifice is the cap minus what your employer already pays.
How does salary sacrificing save tax?
You give up salary (taxed at your marginal rate plus the 2% Medicare levy) and the same amount goes into super, where it is taxed at 15% in the fund. If your marginal rate is higher than 15%, you come out ahead. Below the 15% mark, you do not.
Does salary sacrifice reduce my Medicare levy too?
Yes — it reduces your taxable income, and the 2% Medicare levy is calculated on taxable income. So you save the levy as well as the income tax. That is why this calculator shows both.
What is the contributions tax?
Concessional contributions are taxed at 15% inside your super fund. Higher-income earners may pay an extra 15% under Division 293, which this calculator does not model.
Can I salary sacrifice more than the cap?
You can, but the excess is included in your assessable income and taxed at your marginal rate, plus an excess concessional contributions charge. There is little benefit in exceeding the cap, so this calculator warns you when you do.
Is salary sacrifice the same as an employer contribution?
No, but both count towards the same concessional cap. Your employer’s compulsory super guarantee contributions use part of the cap before your salary sacrifice does.
Related
- Income tax calculator — your tax and the 2% Medicare levy
- Medicare levy surcharge calculator