Super & packaging
Salary Sacrifice And Take-Home Pay
Short answer
Salary sacrifice into super comes out before income tax, so it lowers your taxable income and your take-home pay while lifting your super. Sacrificed contributions are taxed at 15% inside the fund, which beats a 30% or 37% marginal rate. The 2026-27 concessional cap is $32,500, including your employer's 12%.
The trade-off
You give up some cash now for more super and usually less income tax. The sacrificed amount is taxed at 15% in the fund rather than your marginal rate. Model it with the super calculator.
Mind the cap
Concessional contributions (employer super plus salary sacrifice) above the annual cap can be taxed more. Keep total concessional contributions within the cap.
Frequently asked questions
Does salary sacrifice cut my tax?+
Yes - it lowers taxable income, though it also lowers take-home pay because money goes to super.
Is there a limit?+
Yes - the concessional contributions cap applies to employer super plus salary sacrifice combined.
Can I access the extra super now?+
No - it is preserved until retirement like the rest of your super.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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