Australia · 2026-27
Salary sacrificing into super, 2026-27
Salary sacrificing swaps part of your pay for an employer super contribution before tax. In 2026-27 putting $5,000 in costs a $90,000 earner $3,400 of take-home pay, not $5,000, because the amount is no longer taxed. Your employer still pays the full 12% guarantee.
The real cost of sacrificing $5,000 at 8 salaries
| Salary | Take-home falls by | Tax and levy saved | Rate saved at | Super in total |
|---|---|---|---|---|
| $30,000 | $4,051 | $949 | 19% | $8,600.00 |
| $50,000 | $3,325 | $1,675 | 33.5% | $11,000.00 |
| $70,000 | $3,375 | $1,625 | 32.5% | $13,400.00 |
| $90,000 | $3,400 | $1,600 | 32% | $15,800.00 |
| $120,000 | $3,400 | $1,600 | 32% | $19,400.00 |
| $150,000 | $3,050 | $1,950 | 39% | $23,000.00 |
| $190,000 | $3,050 | $1,950 | 39% | $27,800.00 |
| $250,000 | $2,650 | $2,350 | 47% | $35,000.00 (over the cap by $2,500) |
"Super in total" is the employer's 12% guarantee plus the $5,000, against the $32,500 concessional cap. The share saved is lowest at the bottom, where the amount comes off income taxed at only 15c, and highest above $135,000where it comes off the 37c and 45c bands. See the guarantee itself in the super guarantee guide.
Questions
How much tax does salary sacrifice save?
It removes the sacrificed amount from your taxable income, so you save tax and Medicare levy at your top rate: at $90,000 that is 30c plus 2c in each dollar, $1,600 on $5,000. The fund then charges 15% on the contribution, which is outside the take-home figure shown here.
Does it reduce my employer's super?
No. The ATO says salary sacrifice contributions do not reduce the amount your employer calculates your super on and do not count towards the guarantee. Your employer must pay the full guarantee as though there were no arrangement.
Is there a limit?
There is no limit on what you can sacrifice unless your employment terms set one, but contributions over the concessional cap of $32,500 a year are taxed at your marginal rate instead of 15%. At $90,000 your employer's guarantee already uses $10,800, leaving $21,700 of room.
Does it change my HELP repayment or the Medicare surcharge?
No. Salary sacrificed super is a reportable employer super contribution, so it is added back when your study loan repayment income and your income for Medicare levy surcharge purposes are worked out. It lowers income tax and the Medicare levy only.
What is Division 293?
An additional tax on concessional contributions when your combined income and concessional super contributions pass $250,000. It is not modelled here; at the top of the table below the caveat applies.
More Australian guides
Estimates for the 2026-27 financial year using rates read from the ATO on 2026-10-03. Assumes an Australian resident for the whole year. Not payroll, tax or financial advice.