Superannuation Calculator

    Employer Super (SG at 11.5%)

    $9,775

    Total Employment Cost

    $94,775

    Remaining Concessional Cap (after SG)

    $17,725

    Available for salary sacrifice contributions

    Salary Sacrifice Calculator

    Want to maximize your superannuation benefits through salary sacrifice? Learn how much you can contribute to your super fund while reducing your taxable income.

    Salary Sacrifice Guide

    Understanding Superannuation Guarantee and Salary Sacrifice

    The Superannuation Guarantee (SG) is the minimum amount your employer must contribute to your super fund, currently set at 11.5% of your ordinary time earnings (OTE) for the 2024–25 financial year. This rate is scheduled to increase by 0.5% annually until it reaches 12% in 2025–26. While SG contributions are compulsory, many employees choose to boost their retirement savings through salary sacrifice — an arrangement where you agree with your employer to forego part of your pre-tax salary in exchange for additional super contributions. These extra contributions count toward your concessional contributions cap (currently $30,000 for under-60s in 2024–25), and are taxed at 15% inside the super fund, often at a lower rate than your marginal income tax rate — making salary sacrifice a potentially tax-effective strategy.

    How Salary Sacrifice Affects Your Take-Home Pay and Tax

    Salary sacrifice can significantly influence your net income and overall tax liability. By redirecting part of your pre-tax salary into super, you reduce your taxable income — which in turn lowers the amount of income tax you pay. For example, if you earn $85,000 and sacrifice $10,000 into super, your taxable income drops to $75,000. Although the sacrificed amount is taxed at 15% within super (instead of your marginal rate, which could be 32.5% or higher), the combined tax saving can be substantial. However, it’s important to consider your individual circumstances, including any potential impact on government co-contributions, insurance premiums, or loan serviceability, before committing to a salary sacrifice arrangement.

    Concessional Contributions Cap and Tax Implications

    The annual concessional contributions cap for 2024–25 is $30,000 for individuals under 60 (or $50,000 for those aged 60+ meeting specific conditions). This cap includes both your employer’s SG contributions and any voluntary salary sacrifice amounts. Exceeding the cap can result in significant penalties: excess contributions are included in your assessable income and taxed at your marginal tax rate plus an interest charge. It’s also worth noting that unused cap amounts from previous years (from 2018–19 onwards) may be carried forward if your total super balance was under $500,000 at the end of the prior financial year — a useful feature for those looking to make larger contributions in high-income years. Always consult with a financial adviser to ensure your strategy aligns with your long-term goals and compliance requirements.