How much is 1% extra super worth over a career?

At $100,000 base salary, 1% extra super equals $1,000 per year. Invested at a real (post-inflation) return of 7% over 30 years, that compounds to roughly $94,400 in additional retirement balance. That figure is real spending power at retirement, not nominal dollars. At $150,000 base, the same 1% gap becomes $141,600 over 30 years. Source: Moneysmart balanced-portfolio long-term return assumptions.

What is FBT-exempt salary packaging and who qualifies?

FBT exemption lets certain employer types pay part of your salary as non-taxable benefits. Public hospital, public ambulance, and not-for-profit hospital employees can package up to $9,010 of general benefits per FBT year, plus $2,650 of meal entertainment — a total of $11,660 of pre-tax salary that becomes tax-free. Registered public benevolent institutions (PBIs) and health promotion charities get $15,900 plus $2,650 meals ($18,550 total). The annual tax saving equals the packaged amount multiplied by your marginal tax rate. Source: ATO, Fringe Benefits Tax — exempt benefits.

Should I take the higher base or the better bonus?

Discount the bonus by the likelihood you will receive the full amount. Most company bonus schemes pay 50-80% of target on average. A $20,000 bonus at 50% likelihood has an expected value of $10,000. Also factor in tax — bonuses are taxed at your marginal rate through PAYG withholding, so a $20,000 bonus to someone in the 37% bracket nets roughly $12,600 after tax. Compare the risk-adjusted, after-tax bonus value to the certain after-tax value of a higher base salary.

Does the Medicare Levy Surcharge change the comparison?

If either offer pushes your income above $101,000 for singles (or $202,000 for families) and you don't hold private hospital cover, the MLS adds 1-1.5% of your entire income — $1,010 to $2,370 per year for a single at Tier 1-3. That cost should be included in the comparison. Use the Velofy MLS calculator to model both offers and determine whether hospital cover (typically $1,200-$1,800/yr) is cheaper than paying the surcharge.

The $95k Job That Pays More Than $100k — How to Really Compare AU Offers

You have two job offers on the table. One pays $115,000. The other pays $108,000. The higher base wins, right?

Not always. A $95,000 hospital role with 12% super and $9,010 salary packaging can be worth $6,200 more per year than a $100,000 private-sector role without packaging — and $140,000 more in retirement over a 30-year career.

Base salary alone captures roughly 62% of an offer's real value. The other 38% lives in super contributions, salary packaging tax savings, bonus likelihood, leave, and commute cost. Here is how to compare all six variables — with three worked scenarios that show when the "obvious" higher offer is actually the worse one.

Two Australian job offer letters side by side, showing different salary packages with super, bonus, and benefits — The better offer isn't always the one with the bigger number on the first page.

The six variables that move the needle

Every job comparison should cover these six inputs. Miss any one of them and you can be off by thousands per year:

Variable	Why it matters	Typical impact
Base salary	Taxed at your marginal rate. The obvious one.	After-tax, $10k more base is $6.3-$7k more cash at $80-135k bracket.
Super %	12% is the legal minimum, but some employers pay 13-15%.	1% extra at $100k = $94,400 in retirement over 30 years.
Bonus	Target × likelihood. Most schemes pay 50-80% of target on average.	$20k bonus at 50% = $10k expected value, taxed at marginal rate.
Salary packaging	FBT-exempt employers let you receive salary tax-free up to a cap.	Healthcare cap $11,660 saves $3,300/yr at the 30% bracket.
Leave days	20 is the minimum. Each extra day = your daily rate in value.	5 extra days at $100k = $1,920/yr.
Commute cost	After-tax dollars. $50/week = $2,500/yr in lost take-home.	WFH vs CBD at $50/wk differential = $2,500 swing.

Run both offers through the comparison calculator

Enter all six variables for each job. Get a single bottom-line verdict in real dollars — plus the 30-year super gap.

Open Job Offer Comparison Calculator

Scenario 1: The super trap

Job A: $100,000 base + 13% super + no bonus. Job B: $105,000 base + 12% super + no bonus.

Job B looks better — $5,000 more base. But:

Job A super contribution: $13,000/yr. Job B: $12,600/yr. Difference: $400/yr.
Job B's extra $5,000 base is taxed at 30% (the $45k-$135k bracket), netting $3,500 extra cash.
Job A's $400/yr extra super over 30 years at 7% real return = $37,784 more in retirement.

In year one, Job B wins on cash by $3,100 ($3,500 extra cash minus $400 less super). Over 30 years, Job A wins by $37,784 in retirement balance. If you're under 40, the super trap probably favours Job A.

Scenario 2: The bonus mirage

Job A: $130,000 flat salary. Job B: $115,000 + $30,000 target bonus at 50% likelihood.

Job B's expected bonus = $30,000 × 50% = $15,000. Total expected gross = $130,000. Looks equal.

But the $15,000 expected bonus sits in the 37% bracket ($135k-$190k range when added to the $115k base), netting $9,450 after tax. Meanwhile Job A's full $130k is certain — no risk discount, no "performance review" dependency.

At equal expected value, certainty wins. Job B needs to offer a higher expected total to compensate for the risk — a concept economists call a risk premium.

Scenario 3: The healthcare packaging edge

Job A: $120,000 at a private company + 12% super. Job B: $108,000 at a public hospital + 12% super + $9,010 general packaging + $2,650 meal entertainment.

Job A looks $12,000 ahead. But Job B's $11,660 of FBT-exempt salary packaging is received tax-free. At the 30% bracket, that saves:

$11,660 × 30% = $3,498 in annual tax saved
Plus 2% Medicare levy saved on packaged amount: $233
Total packaging value: $3,731/yr

After tax, Job A take-home: ~$87,788. Job B take-home: ~$80,748 + $3,731 packaging = ~$84,479. The gap shrinks from $12,000 gross to ~$3,300 after tax. If Job B also offers 25 days leave (vs Job A's 20), the 5 extra days add $2,077 in value — closing the gap to just $1,200.

For nurses, allied health workers, and charity employees, packaging is often the single biggest variable in a job comparison. The job comparison calculator models this automatically — select "Healthcare / hospital" or "Charity / PBI" from the packaging dropdown.

Model your exact scenario

Enter both offers side by side — base, super, bonus, packaging, leave, commute. Single verdict in 60 seconds.

Open Job Offer Comparison Calculator

The 30-year super gap most comparisons ignore

Every dollar of annual super contribution difference compounds over your remaining career. The future-value-of-annuity formula at 7% real return over 30 years uses a factor of 94.46 — meaning every $1,000/yr in extra super is worth $94,460 at retirement.

At higher incomes the effect is dramatic:

Annual super gap	Over 20 years	Over 30 years
$1,000/yr (1% at $100k)	$40,995	$94,461
$1,500/yr (1% at $150k)	$61,493	$141,691
$3,000/yr (3% at $100k)	$122,985	$283,382

This is the number that separates a serious job comparison from a napkin calculation. The calculator shows it automatically at the bottom of every comparison.

When to ignore the numbers entirely

If the annual dollar gap between two offers is under $5,000, qualitative factors should dominate the decision: manager quality, team culture, learning trajectory, flexibility, career runway. The financial difference over a 2-3 year job tenure is $10-15k — meaningful but not life-changing.

If the gap is over $15,000/year, it outweighs all but the most extreme qualitative differences. A miserable job that pays $20k more is still a $60k financial advantage over three years — enough to meaningfully accelerate mortgage repayment, super balance, or a career pivot fund.