How does salary sacrifice save tax?

The money goes into super taxed at 15%, instead of being paid as salary and taxed at your marginal rate. If your marginal rate is higher than 15%, the difference is your saving. If it is not, there is no saving.

Does the $32,500 cap include my employer's super?

Yes. The concessional cap of $32,500 a year (from 1 July 2026) covers both your employer's compulsory super and anything you salary sacrifice. Add them together to check you stay under the cap.

Does sacrificing super lower my HELP repayment?

No. Your HELP repayment is worked out on income that includes the super you sacrifice. Salary sacrificing to super does not reduce the income used for your compulsory HELP repayment.

Salary sacrifice calculator

Salary sacrificing means directing some of your pre-tax pay into super instead of taking it as salary. The amount you sacrifice is taxed at 15% in the fund, rather than at your marginal rate, so it can lower your tax if your marginal rate is above 15%. Sacrificed contributions count towards the concessional cap, $32,500 a year from 1 July 2026, and that cap includes the super your employer already pays. One catch: your HELP repayment is worked out on income that includes the super you sacrifice. The calculator estimates the effect from ATO rates. It is general information, not advice.

Salary sacrifice calculator (2026–27)

Salary (annual, super on top)

Amount sacrificed to super (per year)

Take-home pay drops by: $3,400
Contributions tax (15% in the fund): $750
Super balance gains: $4,250
Net position per year: +$850

HECS/HELP repayments are worked out on income that still includes sacrificed super, so sacrificing does not reduce a HELP repayment. Higher earners may also pay Division 293 tax — check the ATO. Estimates only, not advice.

Concessional cap by year

Year	Concessional contributions cap
2024–25	$30,000
2025–26	$30,000
2026–27	$32,500

The cap counts employer super guarantee plus everything you sacrifice, across all your funds, in the year the fund receives it.

Worked example

Sacrificing $5,000 from a $85,000 salary in 2026–27: take-home pay drops from $67,280 to $63,880 — a cut of $3,400 — while super grows by $4,250 after the 15% contributions tax of $750. Net position: $850 ahead over the year, with the money in super rather than the bank. Compare the plain salary at $85,000 and $80,000.

Frequently asked

How does salary sacrifice save tax?: The money goes into super taxed at 15%, instead of being paid as salary and taxed at your marginal rate. If your marginal rate is higher than 15%, the difference is your saving. If it is not, there is no saving.
Does the $32,500 cap include my employer's super?: Yes. The concessional cap of $32,500 a year (from 1 July 2026) covers both your employer's compulsory super and anything you salary sacrifice. Add them together to check you stay under the cap.
Does sacrificing super lower my HELP repayment?: No. Your HELP repayment is worked out on income that includes the super you sacrifice. Salary sacrificing to super does not reduce the income used for your compulsory HELP repayment.