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Calculate tax savings from salary sacrificing to super
See how much you save and how it affects your take-home pay and super balance
Amount you want to salary sacrifice to super from your pre-tax salary
Compare take-home pay and tax with and without salary sacrifice
Salary sacrifice moves money from your bank account into your super. Your take-home pay falls by the amount you sacrifice, less the tax it saves you.
You have $20,300 of cap headroom left after this sacrifice.
Note: Salary sacrificing reduces your taxable income, which means you pay less tax. The money goes into your super where it's taxed at 15% instead of your marginal tax rate.
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
Salary sacrifice to super means having part of your pre-tax salary paid directly into your super fund instead of your bank account. These contributions are taxed at 15% in the fund rather than your marginal tax rate.
It is a trade, not free money: every dollar you sacrifice leaves your take-home pay and lands in super, where you cannot touch it until preservation age. What you gain is the tax difference.
Someone earning $100,000 who sacrifices $1,000 saves $320 in income tax and Medicare, so take-home pay falls by $680, while the full $1,000 goes into super. Inside the fund, that $1,000 is taxed at 15% ($150), a separate cost that never touches take-home pay.
For your current figures, employer SG is $7,200 against a concessional cap of $32,500, leaving $25,300 for salary sacrifice and other concessional contributions. Carry-forward unused cap may also affect the available amount.
That depends on facts this calculator does not know. What it can tell you is the mechanic: sacrificed salary is taxed at 15% going into the fund instead of at your marginal rate, so the gap between those two rates is the size of the effect, and it is zero for anyone whose marginal rate is 15% or below. Against that, the money is preserved until you reach preservation age and meet a condition of release, so it is not available for anything before then. Enter your own figures above to see both sides for your income.
Check your contract. Some employers calculate SG on your pre-sacrifice salary, others on your reduced salary. It's a good idea to clarify before setting up sacrificing.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.