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Compare your take-home pay before and after salary sacrifice. See the exact tax savings, super boost, and net benefit of sacrificing part of your pre-tax salary into superannuation for FY2025-26.
You receive $6,800 less in take-home pay, but $10,000 goes to super — that's $3,200 in tax savings.
Salary sacrifice redirects a portion of your pre-tax gross salary into superannuation, reducing your taxable income and the income tax you pay in FY2025-26.
The sacrificed amount is taxed at 15% inside your super fund as a concessional contribution, instead of your marginal tax rate of 30%, 37%, or 45%. The difference between those two rates is your tax saving. Use our Income Tax Calculator to confirm your marginal rate before setting up a salary sacrifice arrangement.
| Item | Without Sacrifice | With $10,000 Sacrifice |
|---|---|---|
| Gross Salary | $100,000 | $100,000 |
| Salary Sacrifice | $0 | -$10,000 |
| Taxable Income | $100,000 | $90,000 |
| Income Tax | -$20,788 | -$17,788 |
| Medicare Levy | -$2,000 | -$1,800 |
| Take-Home Pay | $77,212 | $70,412 |
| Tax Saved | — | $3,200 |
The sacrifice reduces take-home pay by less than $10,000 because the Australian tax calculator applies a lower tax rate to the reduced assessable income. Every dollar sacrificed from the 30% income tax bracket saves $0.15 in net tax (30% marginal rate minus 15% super contributions tax).
Salary sacrifice saves tax because concessional super contributions are taxed at 15%, which is lower than every income tax bracket above the tax-free threshold in FY2025-26.
The tax benefit increases with your marginal tax rate. An employee earning $80,000 in the 30% bracket saves 15 cents per dollar sacrificed. An employee earning $150,000 in the 37% bracket saves 22 cents per dollar. High-income earners above $190,000 in the 45% bracket save 30 cents per dollar, even after accounting for the 2% Medicare levy. Use our Take-Home Pay Calculator to see your after-tax income with and without a sacrifice arrangement.
| Taxable Income Bracket | Marginal Rate | Super Tax | Net Saving per $1 |
|---|---|---|---|
| $18,201 – $45,000 | 16% | 15% | $0.01 |
| $45,001 – $135,000 | 30% | 15% | $0.15 |
| $135,001 – $190,000 | 37% | 15% | $0.22 |
| $190,001+ | 45% | 15% | $0.30 |
Savings shown exclude the 2% Medicare levy reduction, which adds a further $0.02 per dollar for all brackets. Earners in the 16% bracket gain minimal benefit from salary sacrifice into super.
Australian employees earning above $45,000 per year benefit most from salary sacrifice, as their marginal tax rate exceeds the 15% super contributions tax rate.
Salary sacrifice reduces take-home pay but increases total super contributions and delivers a net tax saving at every marginal rate above 16%.
| Salary | Sacrifice | Tax Saved | Take-Home Drop | Net Benefit |
|---|---|---|---|---|
| $80,000 | $5,000 | $1,600 | -$3,400 | $1,600 |
| $80,000 | $10,000 | $3,200 | -$6,800 | $3,200 |
| $100,000 | $10,000 | $3,200 | -$6,800 | $3,200 |
| $100,000 | $15,000 | $4,800 | -$10,200 | $4,800 |
| $120,000 | $15,000 | $4,800 | -$10,200 | $4,800 |
| $150,000 | $20,000 | $7,450 | -$12,550 | $7,450 |
The tax saving increases with your marginal rate. At 30%, every $1,000 sacrificed saves $300 in income tax (minus $150 in contributions tax = $150 net). At 37%, it saves $220 net per $1,000.
The concessional contribution cap for FY2025-26 is $30,000 per year, covering employer SG contributions, salary sacrifice, and personal deductible contributions combined.
Your employer's compulsory 12% superannuation guarantee counts toward the $30,000 cap. On a $100,000 salary, your employer contributes $12,000, leaving $18,000 of cap room for salary sacrifice. On a $150,000 salary, employer SG is $18,000, leaving only $12,000 of cap room. Exceeding the cap results in the excess being added to your assessable income and taxed at your marginal rate, plus an interest charge.
| Salary | Employer SG (12%) | Cap Room for Sacrifice |
|---|---|---|
| $60,000 | $7,200 | $22,800 |
| $80,000 | $9,600 | $20,400 |
| $100,000 | $12,000 | $18,000 |
| $120,000 | $14,400 | $15,600 |
| $150,000 | $18,000 | $12,000 |
| $200,000 | $24,000 | $6,000 |
"Division 293" applies an additional 15% tax on concessional contributions when your income plus concessional super contributions exceed $250,000. This brings the total super contributions tax to 30% instead of 15%. Even at 30%, salary sacrifice remains beneficial for high-income earners because the top marginal income tax rate of 45% plus the 2% Medicare levy totals 47% — still 17 percentage points higher than Division 293 taxation. Check your total assessable income using the Income Tax Calculator to determine if Division 293 applies to your situation.
The most common salary sacrifice mistake is exceeding the $30,000 concessional cap, which triggers excess contributions tax at your marginal rate plus an interest charge.
The superannuation guarantee rate increased to 12% from 1 July 2025, up from 11.5% in FY2024-25, reducing the available concessional cap room for salary sacrifice.
On a $100,000 salary, employer SG rose from $11,500 to $12,000, reducing cap room from $18,500 to $18,000. The concessional contribution cap remains at $30,000. The Stage 3 income tax cuts from 1 July 2024 also changed the calculus: the 30% bracket now extends to $135,000 (previously $120,000), giving more employees access to the 30% vs 15% salary sacrifice benefit. Use the Gross Pay Calculator to determine your total gross salary before modelling sacrifice scenarios.
Salary sacrifice is one component of your total pay package. These calculators model the other components that affect your take-home pay and superannuation balance.
Get the complete picture with income tax, Medicare, HECS, and super — all in one calculation.
Pay Calculator →Last verified: 14 March 2026. Our content is based on the latest information from official Australian government sources.