Does salary sacrifice reduce my holiday loading or overtime?

It depends on your employment contract. Ensure your salary sacrifice agreement states that entitlements are calculated on your pre-sacrifice salary.

When is the deadline for contributions?

To count for a financial year, the fund must receive the money by June 30. Many payroll cycles mean you should act well before this date.

Salary Sacrifice Optimizer

Calculator

See how much tax you can save by sacrificing salary into superannuation.

Free to useNo data storedAI insightsUpdated: February 2026

Salary sacrificing into super is one of the most effective ways to reduce your tax bill while boosting your retirement savings. By contributing from your pre-tax income, you pay 15% tax on the contribution instead of your marginal tax rate (which could be up to 45% + Medicare levy).

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Real-World Examples

Middle Income Earner

Alex earns $90,000 and sacrifices $5,000.

Alex pays 32.5% tax + 2% Medicare levy (34.5%) on income, but only 15% on super. Saving: 19.5% on $5,000 = ~$975 tax saved.

High Income Earner

Sam earns $190,000 and sacrifices $10,000.

Sam pays 45% tax + 2% Medicare levy (47%) on top income. Inside super, tax is 15%. Saving: 32% on $10,000 = $3,200 tax saved.

Frequently Asked Questions

Glossary

Marginal Tax Rate

The tax rate you pay on your highest dollar of income.

Division 293 Tax

An extra 15% tax on super contributions for individuals with combined income and super contributions over $250,000.

Carry-forward rules

Allows you to use unused concessional cap amounts from the previous 5 years if your super balance is under $500,000.

Related Tools

Project Your Balance

See how this extra contribution grows over time.

Government Co-contribution

Low or middle income earner? You might get free money from the government.

How to Use

1Enter your annual income before tax.
2Enter the amount you're considering salary sacrificing per year.
3See the difference in your take-home pay vs. the boost to your super.
4View your total tax savings.

Key Information

Concessional contributions cap is $30,000 per year (includes employer guarantee).
Contributions are taxed at 15% entering the fund.
You generally cannot access these funds until preservation age (usually 60).
High income earners (> $250k) may pay an additional 15% tax (Division 293).

Pro Tips

Check if your employer offers salary sacrifice arrangements.
Consider using 'catch-up' contributions if your balance is under $500k.
Don't sacrifice more than you can afford to lose from your weekly budget.

Avoid These Mistakes

Exceeding the $30,000 concessional cap without available carry-forward amounts.
Sacrificing income you need for short-term goals like a house deposit (unless using FHSS).
Not accounting for the employer's super guarantee in the cap calculation.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026