Salary Sacrifice Calculator Australia 2026-27
Salary sacrifice (also called salary packaging) lets you redirect pre-tax salary into super or other benefits, reducing your taxable income and saving on income tax. See how much you save below.
Annual Tax Saving
$3,200
Net cost of sacrifice: $6,800 (you keep $3,200 in tax savings)
| Item | Without Sacrifice | With Sacrifice |
|---|---|---|
| Gross Salary | $95,000 | $95,000 |
| Taxable Income | $95,000 | $85,000 |
| Income Tax | $19,020 | $16,020 |
| Medicare Levy | $1,900 | $1,700 |
| Take-Home Pay | $74,080 | $77,280 |
How Does Salary Sacrifice Work?
Salary sacrifice reduces your taxable income — so you pay less income tax and Medicare levy. The sacrificed amount goes directly into your super fund (or other approved benefits) before tax is calculated.
Super salary sacrifice is taxed at only 15% inside the fund (the concessional contributions tax), which is much lower than most people's marginal income tax rate. For someone on the 30% bracket, this saves 15c in the dollar — or more for higher earners.
The concessional contributions cap is $30,000 per year (including employer super). If you exceed this cap, the excess is included in your assessable income and taxed at your marginal rate.