Salary Sacrifice Calculator

Salary sacrifice — salary packaging — swaps cash pay for super contributions or benefits before tax is calculated, and in Australia the swap is subsidized: money that would have been taxed at your marginal rate (plus the 2% Medicare levy) is taxed inside super at just 15%. This calculator measures the trade precisely: take-home pay given up, tax saved, what actually lands in super, and how much of your concessional cap remains.

How It Works

The calculator runs two views. The generic view applies the flat tax rate and social-security rate you enter, showing original and new take-home pay, tax and social contributions saved, and the resulting net benefit — useful for non-super sacrifices and non-Australian arrangements. The Australian view applies the real resident tax scale (2024–25 brackets: 0% to $18,200; 16$45,000; 30% to $135,000; 37$190,000; 45% above) plus the 2% Medicare levy:

$\text{Tax saved} = \text{Tax on gross} - \text{Tax on (gross} - \text{sacrifice)}$

$\text{Into super} = \text{Sacrifice} \times (1 - 15\%) \qquad \text{Cost per dollar} = \frac{\text{Take-home reduction}}{\text{Amount landing in super}}$

Contributions tax is 15% of the sacrifice, with a further 15% (Division 293) modeled when income exceeds $250,000. The concessional cap check totals your employer Super Guarantee (defaulted at **12$30,000 concessional cap**.

Worked Example — $100,000 Salary,$10,000 Sacrifice

• Marginal position: the $45,000–$135,000 bracket → 30% tax + 2% Medicare = 32% marginal rate
• Tax without sacrifice: $20,788 +$2,000 Medicare = $22,788; with a$90,000 taxable income: $17,788 +$1,800 = $19,588
• Income tax saved: $3,200
• Contributions tax inside super: $10,000 × 15$1,500 → $8,500 lands in super
• Take-home reduction: $10,000 −$3,200 = $6,800
• Cost per dollar: $0.80 — every dollar that lands in your super costs you 80 cents of spending money; the other 20 cents is the tax system's contribution
• Net benefit versus taking the cash: $8,500 −$6,800 = $1,700 of instant wealth gain
• Cap check: SG 12% × $100,000 =$12,000 + $10,000 sacrifice =$22,000 of the $30,000 cap — **$8,000 of cap remaining**

The Rules That Bound the Strategy

The **$30,000 concessional cap** counts *all* concessional contributions — employer's SG, your sacrifices, and any personal deductible contributions — and exceeding it taxes the excess at your marginal rate (with an excess charge), largely unwinding the benefit; the cap check exists to keep you on the right side. **Carry-forward:** if your total super balance was under$500,000 at the previous 30 June, unused cap from up to five prior years can be carried forward — the calculator reports the current-year cap only, so your true headroom may be larger. Division 293: incomes (including contributions) above $250,000 attract the extra 15% contributions tax, halving the arbitrage at the top. Two practical warnings: your employer cannot reduce SG because you sacrifice — it is calculated on your pre-sacrifice ordinary time earnings — but some employers do treat sacrifice arrangements as part of total remuneration in ways worth reading in your contract; and sacrificed super is preserved until you meet a condition of release, so the strategy trades liquidity for tax efficiency — money you will need before retirement age does not belong in this trade no matter how good the arithmetic looks. Beyond super, salary packaging can cover novated leases (with electric vehicles FBT-exempt), work-related electronics, and more, each with its own caps and employer policies; the generic view of this calculator models the take-home mechanics for those, while the super view is specific to contributions.

Frequently Asked Questions

Why is the benefit biggest in the middle brackets?

Because the arbitrage is your marginal rate minus 15%. At the 32% marginal rate (including Medicare) the spread is 17 points; at 47% it is 32 points but Division 293 claws back 15 above $250,000 of income; below the tax-free threshold there is no tax to save at all — sacrificing on a low income can even lose money to the 15$1.00.

Can I sacrifice my whole salary?

No — practically and contractually. The sacrifice cannot exceed your gross (the calculator enforces this), employers require the arrangement to be prospective (agreed before the income is earned, never backdated), and you must still live on the remaining take-home. The cap math usually binds long before the salary does.

Does salary sacrifice affect my SG or leave?

By law, SG is calculated on your pre-sacrifice ordinary time earnings, so sacrificing does not shrink your employer's compulsory contributions. Leave loading, overtime, and bonuses are treated per your award or contract — check whether yours defines them on pre- or post-sacrifice salary.