ATO Stage 3 + Medicare Levy
At a $150k salary, sacrificing $10,000/yr saves $2,400 in tax this year — and adds $8,500 net to super after the 15% contributions tax. Over 25 years at 7% real return, that compounds to $520,000+ in retirement balance.
Stage 3 marginal rates, $30k concessional cap tracking, Division 293 flag for high earners, and compound projection — all in 30 seconds.
How much each $1 of salary sacrifice saves at common income bands. The saving = marginal rate + 2% Medicare − 15% contributions tax.
| Annual Income | Marginal Rate | Saved per $1 Sacrificed | Saving on $10k Sacrifice |
|---|---|---|---|
| $40,000 | 16% | 3c | $300 |
| $80,000 | 30% | 17c | $1,700 |
| $120,000 | 30% | 17c | $1,700 |
| $150,000 | 37% | 24c | $2,400 |
| $200,000 | 45% | 32c | $3,200 |
| $260,000 (Div 293) | 45% | 17c | $1,700 |
The $260k row shows Division 293 effect — for incomes above $250k, the contributions tax doubles from 15% to 30%, halving the effective per-dollar saving. Sacrifice can still be worth it for the long-term compounding inside super.
The tax saving equals the difference between your marginal rate (plus 2% Medicare levy) and the 15% contributions tax inside super, applied to the sacrificed amount. Under Stage 3 brackets: at the 30% marginal rate ($45k-$135k income), each $1 sacrificed saves 17c (30% + 2% − 15% = 17c). At the 37% rate ($135k-$190k): 24c per $1. At the 45% rate ($190k+): 32c per $1. At the 16% rate ($18.2k-$45k): only 3c per $1 — salary sacrifice rarely pays off in the lowest bracket.
The concessional (pre-tax) contributions cap is $30,000 per financial year for 2025-26. This includes your employer's Super Guarantee contributions (12% of OTE), salary sacrifice, and any personal deductible contributions. On a $145,000 salary the employer SGC alone is $17,400, leaving $12,600 of cap headroom for salary sacrifice before excess contributions tax applies. The cap rises to $32,500 from 1 July 2026.
Division 293 is an extra 15% contributions tax that applies if your income plus concessional contributions exceeds $250,000. The 15% applies only to the portion above $250,000 (or your concessional contributions, whichever is lower). At a $260,000 salary with $20,000 sacrifice, Division 293 adds 15% × $20,000 = $3,000 in extra tax, reducing the effective saving. The calculator flags this automatically and includes it in the verdict.
Not automatically. Salary sacrificed super is reported as Reportable Employer Super Contributions (RESC) and added back into your income for HECS-HELP repayment income, MLS income test, and child support income test. Salary sacrifice DOES reduce your assessable income for income tax purposes — so you save tax — but it does NOT reduce your HECS bracket or move you below the MLS threshold of $101,000 (singles). The Velofy MLS calculator and HECS repayment calculator account for this correctly.
Yes, if your total super balance was below $500,000 on 30 June of the previous year, you can carry forward unused concessional cap from up to five prior financial years. For example, if you only used $20,000 of the $27,500 cap in 2022-23 ($7,500 unused), you can add that headroom to the current year's cap on top of the standard $30,000. Check your unused cap via myGov → ATO → Super → Concessional contributions.
Salary sacrifice is arranged with your employer before pay is earned. Personal deductible contributions are made from after-tax money (you pay then claim a deduction at tax time via Section 290-170 notice to your fund). The tax outcome is identical, but personal deductible contributions: (1) don't require employer cooperation, (2) don't count toward RESC for income-tested measures like HECS or Family Tax Benefit, and (3) require lodging a notice with your super fund before claiming. For HECS-affected employees, personal deductible contributions often beat salary sacrifice.