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SOUTHERN ALPHA

Super · FY 2025-26

Salary sacrifice to super

See exactly what you'd give up in take-home pay, what lands in super after the 15% contributions tax, and how much extra you're actually ahead.

Drop in take-home pay
$6,800
Per year
Lands in super (net)
$8,500
After $1,500 contributions tax
Net wealth gain
$1,700
vs. taking it as salary
Employer SG
$14,400
12% — counts toward cap

The verdict

You give up $6,800 from your take-home pay, but $8,500 hits your super — a net wealth boost of $1,700 per year. That money is locked in super until preservation age (60 for most readers here).

Related calculators

Super calculator

Project the long-term effect on your retirement balance.

Income tax calculator

See your take-home pay before sacrificing.

FIRE calculator

Higher contributions push your FIRE date forward.

HECS calculator

Salary sacrifice still counts toward HECS income — check it.

Frequently asked questions

What is the concessional contributions cap for 2025-26?

$30,000 per year, including employer Super Guarantee contributions. Unused cap from the past 5 years can be carried forward if your total super balance is under $500,000.

How much tax does salary sacrifice save?

Money sent to super is taxed at 15% instead of your marginal rate. If your marginal rate is 30%, you save 15c on every dollar sacrificed.

What is Division 293 tax?

An additional 15% tax on concessional contributions for people earning over $250,000 — effectively making the contribution tax 30% for high earners.

Can I access the money before retirement?

Not without meeting a condition of release. For most readers that's age 60 (preservation age). Treat salary sacrifice as long-term locked away.

Should I do salary sacrifice or after-tax contributions?

Salary sacrifice (concessional) is best when your marginal rate is above 15%. After-tax (non-concessional) contributions are better if you've maxed your concessional cap or have surplus capital.

Assumptions

FY 2025-26 ATO resident rates, 2% Medicare levy, 12% Super Guarantee, $30k concessional cap, 15% contributions tax (30% if Division 293 applies). Excludes HECS, LITO and other offsets. Carry-forward unused cap is not modelled.