Current ATO rates + Medicare levy
At a $150k salary, sacrificing $10,000/yr saves $2,400 in tax this year after the 15% contributions tax, and adds $8,500 to super. From age 40 to 67, at 7% a year less 0.25% fees, that adds about $609,000, or about $228,000 in today’s dollars.
Current marginal rates, $32,500 concessional cap tracking, Division 293 flag for high earners, and compound projection — all in 30 seconds.
Assumptions used: 2026–27 tax rates and the 2% Medicare levy, employer super at 12% of $120,000, salary sacrifice of $10,000 every year, 15% contributions tax (plus Division 293 tax where it applies), the $32,500 cap, a 7.0% a year return after investment fees and tax, less 0.25% a year admin fees, from age 40 to retirement at 67 (27 years), and today’s dollars at 3.7% a year. Insurance premiums not taken off.
How much each $1 of salary sacrifice saves at common income bands. The saving = marginal rate + 2% Medicare − 15% contributions tax, plus any low income tax offset you gain back between $37,500 and $66,667.
| Annual Income | Marginal Rate | Saved per $1 Sacrificed | Cap Room After Employer Super |
|---|---|---|---|
| $40,000 | 15% + 5% offset | 7c | $27,700 |
| $55,000 | 30% + 1.5% offset | 18.5c | $25,900 |
| $80,000 | 30% | 17c | $22,900 |
| $120,000 | 30% | 17c | $18,100 |
| $150,000 | 37% | 24c | $14,500 |
| $200,000 | 45% | 32c | $8,500 |
| $260,000 (Division 293) | 45% | 17c | $1,300 |
The cents saved apply to the first dollars you sacrifice: a large sacrifice can drop part of your income into a lower tax band or the Medicare levy’s low-income range. “Offset” is the low income tax offset: it shrinks by 5c per $1 of income from $37,500 to $45,000 and by 1.5c per $1 from $45,000 to $66,667, so lowering your taxable income in that range gives some of it back. Cap room is $32,500 less 12% employer super. On salaries over $250,000, Division 293 tax takes another 15% of each dollar sacrificed, so the saving falls to 17c; between about $223,000 and $250,000 it applies to employer super only, so the saving stays at 32c.
The saving on each dollar you sacrifice is the income tax and Medicare levy it saves, minus the 15% contributions tax your fund pays. In 2026–27 that is 17c per $1 at $66,668 to $135,000 (30% + 2% − 15%), 24c per $1 at $135,001 to $190,000, and 32c per $1 above $190,000. Between $37,500 and $66,667 a lower taxable income also gives back some of the low income tax offset, so the saving is about 7c per $1 at $37,500 to $45,000 and 18.5c per $1 at $45,001 to $66,667. Above $250,000, Division 293 tax reduces the saving.
$32,500, up from $30,000 in 2025–26. It includes your employer's super guarantee (12% of ordinary time earnings), salary sacrifice and personal contributions you claim as a tax deduction. On a $145,000 salary the employer super guarantee alone is $17,400, which leaves $15,100 of cap for salary sacrifice.
Division 293 tax is an extra 15% on concessional contributions when your income plus those contributions is over $250,000. It applies to the smaller of your concessional contributions and the amount over $250,000. For example, $240,000 of income plus $30,000 of concessional contributions is $270,000, which is $20,000 over, so the extra tax is 15% of $20,000, or $3,000. The calculator shows the Division 293 tax your sacrifice adds: the tax with the sacrifice less the tax without it. A sacrifice moves dollars from taxable income into contributions, so it only adds Division 293 tax when your salary is over $250,000.
No. Salary-sacrificed super is added back as a reportable super contribution when your HELP repayment income, your Medicare levy surcharge income and your child support income are worked out. Personal contributions you claim as a tax deduction are added back the same way. Salary sacrifice lowers your income tax, but not your HELP repayment, and it does not move you under the surcharge threshold of $105,000 for singles in 2026–27. The Medicare levy surcharge calculator and HECS repayment calculator let you add it back.
Yes, if your total super balance was under $500,000 on 30 June of the previous year. You can use unused concessional cap from up to five previous years. For example, if you used $20,000 of the $27,500 cap in 2022–23, the $7,500 you didn't use can be added to this year's $32,500 cap. The oldest amount still available, from 2021–22, expires on 30 June 2027. Your unused amounts are shown in your ATO online account through myGov.
Salary sacrifice is arranged with your employer, so the money goes to super before it reaches your pay. A personal deductible contribution is paid from your own account and claimed as a tax deduction at tax time. Before you claim it, you send your fund a notice of intent and get its acknowledgement. The tax result is the same: both are taxed at 15% in super, and both are added back for HELP repayment income and Medicare levy surcharge income. Personal contributions don't need your employer's agreement.
Take two offers: Job A pays $130,000 with 12% super, and Job B pays $128,000 with 13% super. Job A pays more now, but Job B puts more into super every year, and that compounds. At a 7% return a year less 0.25% fees, each extra $1 a year for 30 years grows to about $90, or about $30 in today’s dollars. The Job Offer Comparison Calculator sets base pay, super, bonus and salary packaging side by side, including the 30-year gap in retirement balance.
Yes. Choose weekly, fortnightly, monthly or annual above the amount box, then enter what you sacrifice each pay. The calculator multiplies by 52, 26, 12 or 1 to get the yearly amount and checks it against the $32,500 cap. The tax saving, take-home pay and projection all use the yearly amount.