Salary sacrifice vs take-home pay

How salary sacrificing into super compares with taking the cash, why the benefit equals your marginal rate minus 15%, and when it stops being worth it.

Try the Salary sacrifice calculator to run your own numbers.

Salary sacrificing means asking your employer to pay part of your pre-tax salary into super instead of your bank account. Inside super it's taxed at 15%; in your pay it's taxed at your marginal rate. The benefit is simply the gap between those two rates.

The maths

On a $95,000 salary (a 30% marginal rate plus 2% Medicare), sacrificing $10,000 saves $3,200 in income tax. The fund takes 15% ($1,500), leaving you about $1,700 ahead — roughly 17c per dollar sacrificed.

When it isn't worth it

If your income is under $18,200 you pay no income tax, so sacrificing would actually cost you 15%. The benefit also shrinks near the tax-free threshold, and high earners over $250,000 face Division 293, which lifts the super tax to 30% — still below the top 47% marginal rate, but less compelling.

Don't blow your cap

Salary sacrifice plus employer SG must stay within the $30,000 concessional cap (2025–26). Going over means the excess is taxed at your marginal rate.

Frequently asked questions

Is salary sacrificing into super worth it?

Yes, whenever your marginal tax rate is above 15%. On $95,000, sacrificing $10,000 leaves you about $1,700 better off.

Can salary sacrifice reduce my tax?

Yes — it lowers your taxable income, so you pay less income tax while contributions are taxed at just 15% in the fund.

Try the Salary sacrifice calculator to run your own numbers.