Salary Sacrifice Super (AU)
Updated November 2026 · Free · No sign-up
Calculate salary sacrifice into super — swapping salary taxed at your marginal rate (up to 47%) for contributions taxed at 15%, inside the $30,000 concessional cap (SG included), with carry-forward and the Division 293 high-earner surcharge.
Quick answer: The arbitrage: salary at a 32-47% marginal rate vs 15% contributions tax in super. Cap: $30,000/year concessional (2024-25+, indexed — verify) INCLUDING employer SG; unused cap carries forward 5 years (balance < $500k). $160k+ earners: watch Division 293 (+15% above $250k income).
The Math
Each sacrificed dollar skips your marginal rate (+2% Medicare) and enters super at 15% (the fund pays it). 2024-25-era resident brackets: 30% + 2% at $45-135k, 37% + 2% at $135-190k, 45% + 2% above. The saving per $1,000 sacrificed: $170 (32% bracket), $240 (39%), $320 (47%) — compounding inside super thereafter.
The Guardrails
| Concessional cap | $30,000/yr including employer SG — a $110k earner’s 12% SG ($13.2k) leaves ~$16.8k of sacrifice headroom |
| Carry-forward | Unused cap amounts from the prior 5 years usable while total super balance < $500k — the catch-up lever after career breaks |
| Division 293 | Income + concessional contributions over $250k → extra 15% on the excess contributions (still usually beats 47%) |
| Excess contributions | Taxed at marginal rates (less the 15% offset) — breaching the cap unwinds the benefit |
| Access | Preserved to 60 (conditions of release) — the liquidity price of the tax deal |
Worked Example
$110,000 salary, $10,000 sacrifice: take-home falls ~$6,100, super gains $8,500 net — +$2,400/year of free money at the 39% bracket, more with compounding. SG check: 13.2k + 10k = $23.2k < $30k cap ✓.
Alternatives and Admin
Personal deductible contributions achieve identical tax results with more timing control (notice-of-intent paperwork); spouse contributions and co-contributions suit low-income years. Sacrifice agreements must be PROSPECTIVE (future earnings only) and can’t reduce your SG base (post-2020 law — employers must pay SG on the pre-sacrifice salary). Not financial advice — model caps and Division 293 for your year; verify figures at the ATO.
Frequently Asked Questions
How much tax does salary sacrifice save?
The gap between your marginal rate (32-47% incl. Medicare) and super’s 15% contributions tax — $170-320 per $1,000 sacrificed, inside the concessional cap.
What is the concessional cap?
$30,000/year (indexed) including employer SG — excess contributions tax at marginal rates, unwinding the benefit; carry-forward of 5 years’ unused cap applies under $500k balances.
Does sacrificing reduce my employer’s SG?
No — since 2020, SG must be calculated on your pre-sacrifice ordinary earnings; agreements reducing it breach the law.
What is Division 293?
An extra 15% contributions tax when income + concessional contributions exceed $250,000 — halving but not eliminating the arbitrage for high earners.
When can I access the money?
Preservation age rules — generally 60 with a condition of release; the lock-up is the price of the concession. Not financial advice.
✓ Formula verified • Last updated: November 3, 2026