Australia Salary Sacrifice Calculator 2026 β Super Tax Savings + Div 293
Calculate 2026 Australian salary sacrifice benefits: employer SG 12%, concessional cap $30,000, contributions tax 15%, Division 293 at $250K threshold. Carry-forward unused caps, net income impact, super projections.
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Annual Tax Saving
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Net Take-Home Impact
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Division 293 Tax
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Remaining Concessional Cap
Salary Sacrifice Breakdown (2025-26)
Australia Salary Sacrifice to Super 2025-26
Salary sacrifice is one of the most effective tax strategies for Australian employees. Contributions to super via salary sacrifice are taxed at 15%, while your marginal rate above $45,001 is 32.5%β45%. The higher your income, the greater the benefit. The concessional cap is $30,000 for 2025-26 (up from $27,500 in 2024-25).
2025-26 Australia Tax Rates & Super Rules
Income tax rates: 0% (β€$18,200), 16% ($18,201β$45,000), 30% ($45,001β$135,000)
37% ($135,001β$190,000), 45% (>$190,000) + Medicare 2%
Concessional cap: $30,000 (includes SGC + salary sacrifice + personal deductible)
Contributions tax: 15% (or 30% with Div 293 if income + super > $250K)
SGC rate: 11.5% for 2025-26
Carry-forward: Available if super balance < $500K (June 30 prior year)
37% ($135,001β$190,000), 45% (>$190,000) + Medicare 2%
Concessional cap: $30,000 (includes SGC + salary sacrifice + personal deductible)
Contributions tax: 15% (or 30% with Div 293 if income + super > $250K)
SGC rate: 11.5% for 2025-26
Carry-forward: Available if super balance < $500K (June 30 prior year)
Example β A$120,000 salary, A$10,000 extra sacrifice
SGC: $120,000 Γ 12% = $14,400
Total concessional contributions: $14,400 + $10,000 = $24,400 (under $30,000 cap)
Income after sacrifice: $110,000
Tax saving: $10,000 Γ (32.5% marginal β 15% super tax) = $10,000 Γ 17.5% = $1,750
Medicare saving: $10,000 Γ 2% = $200 | Total saving: $1,950
Net take-home reduction: $10,000 β $1,950 = $8,050 (but $10,000 goes to super)
Total concessional contributions: $14,400 + $10,000 = $24,400 (under $30,000 cap)
Income after sacrifice: $110,000
Tax saving: $10,000 Γ (32.5% marginal β 15% super tax) = $10,000 Γ 17.5% = $1,750
Medicare saving: $10,000 Γ 2% = $200 | Total saving: $1,950
Net take-home reduction: $10,000 β $1,950 = $8,050 (but $10,000 goes to super)
Extended
Carry-Forward Unused Caps + Optimal Sacrifice Amount by Income
Calculate available carry-forward cap space and find the optimal sacrifice amount for maximum tax savings
If your super balance was below $500,000 on 30 June 2025, you may be able to use carry-forward of unused concessional cap from prior years. Enter your unused cap amounts below.
Important: Unused cap from 2020-21 expires on 30 June 2026 β use it now or lose it!
Carry-Forward Unused Concessional Cap
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Optimal Sacrifice Amount by Income Band
| Salary | Marginal Rate | SGC (11.5%) | Room to Cap | Max Extra Sacrifice | Tax Saving/A$1K sacrifice |
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Frequently Asked Questions
What is salary sacrifice and how does it reduce tax in Australia?
Salary sacrifice (also called salary packaging) involves agreeing with your employer to forgo part of your before-tax salary in exchange for employer contributions to your super fund. These contributions are taxed at 15% (the concessional contributions tax) rather than your marginal income tax rate (19%β45%). For a person on the 32.5% or higher marginal rate, this creates an immediate tax saving of 17.5β30 cents per dollar sacrificed, plus the benefit of compound growth in super.
What is the concessional contribution cap for 2025-26?
The concessional contributions cap for 2025-26 is $30,000 per year. This includes both employer SGC (now 12% from 1 July 2025) and any salary sacrifice or personal deductible contributions. Exceeding the cap means the excess is included in your assessable income and taxed at your marginal rate, with a 15% offset for the contributions tax already paid (effectively only the difference is charged, which is your marginal rate minus 15%).
What is Division 293 tax and who pays it?
Division 293 tax is an additional 15% tax on concessional contributions for high earners. It applies when your income plus concessional contributions exceeds $250,000. In this case, the effective tax on super contributions rises from 15% to 30%. Division 293 is assessed by the ATO via a notice and can be paid from super or from personal funds. For example, if your salary is $200,000 and you have $30,000 concessional contributions, your combined income is $230,000 β below $250K so Div 293 does not apply.
What is carry-forward of unused concessional contributions?
Since 2019-20, if your total superannuation balance was below $500,000 on June 30 of the prior year, you can carry forward any unused concessional contribution cap space from the previous 5 years. For 2025-26, you can access unused cap from 2019-20, 2020-21, 2021-22, 2022-23, and 2023-24 (cap was $27,500 in 2019-20 to 2023-24, then $30,000 from 2024-25). Total maximum carry-forward over 5 prior years can be substantial. This is particularly valuable for people returning to work, inheriting funds, or with irregular income.
How does salary sacrifice affect Medicare levy and super guarantee?
Salary sacrifice reduces your assessable income, which in turn reduces the Medicare levy (2% of taxable income). However, it does not reduce the base on which Superannuation Guarantee (SGC) is calculated β employers must pay SGC on ordinary time earnings, which typically excludes salary sacrifice amounts. This means if you sacrifice $10,000 of salary, your SGC is still calculated on the original salary figure (this changed from 2020 to prevent employers from reducing SGC base via sacrifice). Always check with your employer how they calculate SGC in relation to sacrifice.