How super and salary sacrifice work (2026-27)
Rates checked 15 Oct 2026 against the ATO's super contribution caps.
Your employer must pay 12% of your salary into super (the super guarantee), up to the maximum contribution base of $270,830 for 2026-27. With Payday Super this is now a yearly limit, so the most an employer must pay is $32,499.60. Salary you sacrifice still counts, so sacrificing doesn't reduce your employer's 12%.
Salary sacrifice means asking your employer to pay part of your pre-tax salary into super. It isn't taxed at your marginal rate. Instead your fund takes 15% contributions tax. If your marginal rate plus the 2% Medicare levy is more than 15%, you save the difference. On $100,000, sacrificing $10,000 saves $3,200 in income tax and Medicare, costs $1,500 in contributions tax, and cuts take-home pay by $6,800. That puts $8,500 more in super.
Employer, salary sacrifice and deductible personal contributions all count towards the concessional contributions cap of $32,500 from 1 July 2026. Amounts over the cap are added to your taxable income and taxed at your marginal rate, less a 15% offset, so they save little. If your total super balance was under $500,000 on 30 June last year, you can use unused cap amounts from the past 5 years. myGov shows how much you have.
If your income plus concessional contributions is over $250,000, Division 293 adds another 15% on the smaller of your contributions or the amount over $250,000.
This calculator works out this year's contributions and tax only, from current ATO rates: it doesn't project your super into the future. That makes it factual information, not general or personal advice. To see what your super could grow to by retirement, in today's dollars using ASIC's required assumptions, use the super and retirement calculator.
General information only, not financial, tax or credit advice. Check your situation with the ATO, your state revenue office or a licensed adviser.
Salary sacrifice and super FAQs
Is salary sacrifice worth it?
Usually, if your taxable income is over $45,000. There your tax rate is 30% or more plus the 2% Medicare levy, against 15% in super. Below about $45,000 the saving is small or nothing, and the money is locked away until you can access your super.
What is the concessional contributions cap for 2026-27?
$32,500, up from $30,000. It covers your employer's super guarantee, salary sacrifice and personal contributions you claim as a tax deduction, across all your funds.
How do I find my unused carry-forward cap?
Log in to myGov, open the ATO, then Super, Information, and Carry forward concessional contributions. You can only use it if your total super balance was under $500,000 on 30 June of the previous year. Unused amounts expire after 5 years.
What happens if I go over the cap?
The excess is added to your taxable income and taxed at your marginal rate, with a 15% offset for the tax your fund already paid. The ATO writes to you with options for paying it.
What is Division 293 tax?
An extra 15% on concessional contributions for people whose income plus contributions is over $250,000. It applies to the smaller of your contributions or the amount over $250,000. The ATO bills you separately, and you can pay it from your super.