Salary Sacrifice Calculator (Australia)
See how salary sacrifice affects your take-home pay and super balance. Enter your salary and sacrifice amount to compare scenarios side by side.
Salary sacrificing to super can reduce your taxable income and boost your retirement savings, but the benefits depend on your income level and the concessional contributions cap.
Note: This calculator uses 2024-25 tax rates and assumes you're an Australian resident.
2024-25 Australian resident tax rates. SG is calculated on full gross salary.
Enter your salary and sacrifice amount to see the comparison
How salary sacrifice works
Salary sacrifice is an arrangement where you agree to forego part of your pre-tax salary in exchange for equivalent benefits. The most common form is salary sacrificing to superannuation, where the foregone salary goes directly into your super fund.
When you salary sacrifice to super, the amount is taxed at 15% (the concessional contributions tax rate) instead of your marginal tax rate. For someone on a 37% marginal rate, this means paying 15% tax instead of 37% — a 22% saving on each dollar sacrificed.
Your employer's super guarantee (SG) contribution is typically calculated on your full gross salary before salary sacrifice, meaning your SG entitlement stays the same.
What does this calculator include?
- Comparison of take-home pay with and without salary sacrifice
- Income tax and Medicare levy calculations at 2024-25 rates
- 15% contributions tax on salary sacrifice amounts to super
- Super guarantee calculated on full gross salary
- Warnings when approaching or exceeding the $27,500 concessional cap
- Carry-forward unused concessional caps from prior years
- Estimated additional tax on excess concessional contributions
What does this calculator not include?
- Division 293 tax (additional 15% on super contributions for incomes above $250,000)
- HECS/HELP repayments
- Medicare levy reduction for low-income earners
- Medicare levy surcharge for high-income earners without private health insurance
- Fringe benefits tax (FBT) on non-super salary sacrifice items
- Government super co-contribution for low-income earners
This is a simplified estimate. Your actual tax and super outcomes may differ based on your individual circumstances.
FAQ
What is salary sacrifice?
Salary sacrifice is an arrangement where you agree to receive less take-home pay in exchange for your employer providing benefits of a similar value. Common salary sacrifice items include additional super contributions, novated car leases, and portable electronic devices.
How much tax do I save with salary sacrifice?
The tax savings depend on your marginal tax rate and the type of salary sacrifice. For super contributions, you pay 15% contributions tax instead of your marginal rate (which can be up to 45% plus Medicare levy). The higher your income, the greater the potential tax benefit.
What is the concessional contributions cap?
The concessional contributions cap for 2024-25 is $27,500 per year. This includes employer super guarantee contributions, salary sacrifice contributions, and personal deductible contributions. Contributions above this cap are taxed at your marginal rate.
Does salary sacrifice reduce my super guarantee?
Generally no. Most employers calculate the super guarantee (SG) on your full gross salary before salary sacrifice. However, some employers may calculate SG on your reduced salary, so check your employment contract or ask your payroll department.
Is salary sacrifice to super worth it on a low income?
Not always. If your marginal tax rate is 0% (income under $18,200) or 16% (income $18,201-$45,000), salary sacrificing to super may provide little or no benefit because the 15% contributions tax is similar to or higher than your marginal rate. Low-income earners may benefit more from after-tax contributions and the government co-contribution.
What is carry-forward?
If you haven't used your full concessional cap in previous years, you may be able to use the unused amounts now. This applies if your total super balance was under $500,000 on the previous 30 June. Unused caps are available from the past 5 financial years.
What happens if I exceed the concessional cap?
Excess concessional contributions are added to your assessable income and taxed at your marginal rate. However, you receive a 15% tax offset for the contributions tax already paid by your super fund. This calculator estimates the net additional tax.
Calculator version: v2 (includes concessional cap modelling with carry-forward)
Disclaimer
This calculator provides estimates only and does not constitute financial advice. Salary sacrifice arrangements can be complex and the actual tax outcomes may vary based on your individual circumstances, employment contract, and current tax legislation.
Before entering into a salary sacrifice arrangement, consult a registered tax agent or licensed financial adviser to understand how it applies to your specific situation.