Salary Sacrifice
Calculator
See exactly how much tax you save by salary sacrificing into super. Compare your before and after take-home pay, super contributions, and effective tax rate. Uses ATO FY2024–25 rates including Stage 3 tax cuts.
| Item | Before | After | Change |
|---|---|---|---|
| Gross salary | $95,000 | $95,000 | — |
| Salary sacrifice to super | — | −$10,000 | −$10,000 |
| Taxable income | $95,000 | $85,000 | −$10,000 |
| Income tax | −$21,342 | −$18,092 | +$3,250 |
| Medicare levy | −$1,900 | −$1,700 | +$200 |
| Take-home pay | $71,758 | $65,208 | −$6,550 |
| Employer SG super | $11,400 | $11,400 | — |
| Salary sacrifice to super | — | $10,000 | +$10,000 |
| Contributions tax (15%) | — | −$1,500 | −$1,500 |
| Net super boost | — | $8,500 | +$8,500 |
How salary sacrifice works — the complete guide
Everything you need to know about salary sacrifice in Australia: the mechanics, the tax benefits, the risks, and the implications.
What is salary sacrifice?
Salary sacrifice (also called salary packaging) is an arrangement where you agree with your employer to receive less take-home pay in exchange for your employer providing benefits of equivalent value. The sacrifice happens before income tax is applied — which is what makes it valuable.
The most common forms in Australia are salary sacrificing into superannuation and into a novated lease for a car. Some employers (particularly public hospitals, charities, and certain non-profits) also offer FBT-exempt packaging for living expenses and meal entertainment.
Because the sacrificed amount is taken from your pre-tax salary, you pay income tax on a lower income. The tax saving depends on your marginal tax rate — the higher your income, the more you save.
Is salary sacrifice worth it in Australia?
For most Australian employees above the $45,001 income threshold, salary sacrificing into super is a net-positive strategy. You reduce your taxable income, pay less income tax at your marginal rate, and the money goes into super where it's taxed at only 15% — a saving of at least 17.5 cents per dollar at the 32.5% marginal rate.
The Stage 3 tax cuts and salary sacrifice
The Stage 3 tax cuts effective 1 July 2024 reduced the 32.5% bracket's upper limit from $120,000 to $135,000 and abolished the 37% bracket, replacing it with a 32.5% rate up to $135,000 and 37% above. This means some previously high-rate earners now have a lower marginal rate — but salary sacrifice into super still saves at least 17.5 cents per dollar for most people above $45,000.
How much should I salary sacrifice?
A common starting point is to sacrifice enough to top up your total concessional contributions to the $30,000 cap. Subtract your employer's SG contribution (11.5% for FY2025) from $30,000 — the remainder is your maximum sacrifice within the cap. From there, the question is how much take-home pay reduction you can absorb.
// SUPER_BALANCE
See how today's salary sacrifice accelerates your super balance at retirement and extends your drawdown runway.
Super Balance Calculator →// NOVATED_LEASE
Salary sacrifice a car through a novated lease — especially attractive for EVs which are currently FBT-exempt.
Novated Lease →// HECS_REPAYMENT
Salary sacrifice reduces your taxable income — which may reduce your compulsory HECS repayment.
HECS Calculator →