Salary sacrifice up to $32,500 a year and pay 15% contributions tax instead of your marginal rate of up to 45%.
ATO 2026–27 SGC rates, $32,500 concessional cap, salary sacrifice tax savings — instant, private, free.
Find your current balance in myGov or your annual super statement. Leave blank if starting from $0.
Salary sacrifice and personal contributions can significantly boost your retirement balance.
Enter your super balance, age, and income, then click Calculate to see your projected retirement balance, contribution room, and salary sacrifice savings.
All contributions to super are subject to ATO rules. Understanding the caps and tax rates helps you maximise your super balance without triggering excess contributions tax.
| Contribution Type | Rate / Cap | Tax Inside Super | Notes |
|---|---|---|---|
| Employer SGC | 12.0% of income | 15% | Final legislated rate since 1 Jul 2025 |
| Salary sacrifice | Up to concessional cap | 15% | Reduces taxable income; counted within $32,500 cap |
| Personal deductible | Up to concessional cap | 15% | Requires a notice of intent to your fund |
| Concessional cap | $32,500/yr | — | Includes employer + sacrifice + personal deductible. Rose from $30,000 on 1 Jul 2026 |
| After-tax (non-concessional) | $130,000/yr | Nil | No deduction; four times the concessional cap, so it rose with it on 1 Jul 2026. Can use the bring-forward rule (3 years) |
| Division 293 tax | Extra 15% | 30% total | Applied to concessional contributions when income + contributions > $250,000 |
Most super calculators show you a 30-year projection. The real question for most Australians is simpler: how many cents do I save on every dollar I sacrifice into super, right now? The answer depends on your Stage 3 marginal tax rate minus the flat 15% contributions tax inside super.
Salary sacrifice redirects pre-tax income into super. You avoid paying your marginal income tax rate on the sacrificed amount, but you do pay 15% contributions tax inside super. The net saving is the difference — and for most middle-income earners it works out to between 17c and 32c on the dollar.
| Your taxable income | Marginal rate | Saved per $1 sacrificed | Saving on $10,000 sacrifice |
|---|---|---|---|
| $18,201 – $45,000 | 15% + 2% Medicare | 2c | $200 |
| $45,001 – $135,000 | 30% + 2% Medicare | 17c | $1,700 |
| $135,001 – $190,000 | 37% + 2% Medicare | 24c | $2,400 |
| $190,001 – $250,000 | 45% + 2% Medicare | 32c | $3,200 |
| $250,001+ (Division 293) | 45% + 2% + extra 15% | 17c | $1,700 |
The annual concessional cap of $32,500 (2026–27, up from $30,000 in 2025–26) includes three contribution types stacked together:
If your gross salary is $100,000, your employer already puts $12,000 into super as SGC. That leaves only $20,500 of cap room for salary sacrifice or personal deductible contributions before you trigger the excess concessional contributions charge. Exceed the cap and the excess is added back to your assessable income and taxed at your marginal rate — wiping out the saving entirely.
The end tax result is identical: both reduce your taxable income dollar-for-dollar and both are taxed at 15% inside super. The choice usually comes down to cash-flow timing:
Watch-out for HECS/HELP and MLS: salary sacrifice is added back as Reportable Employer Super Contributions (RESC) when calculating your repayment income for HECS and your MLS threshold income. Personal deductible contributions are not — so for HECS-affected employees earning over $67k, personal deductible can be slightly more tax-efficient.
The calculator above projects your total super balance to retirement, factoring salary sacrifice into the long-run model. If your only question is "what will I save in tax this year from sacrificing $X?" — try the dedicated single-purpose tool. It shows the cents-per-$1 verdict at your exact marginal rate, the concessional cap progress bar, Division 293 flag for $250k+ earners, and a 30-year compound projection of the tax saved. And to see the growth mechanics behind any of these projections — how each extra dollar compounds year by year, in both nominal and inflation-adjusted terms — run the numbers through the compound interest calculator.
Open the salary sacrifice calculator →
If your total super balance was below $500,000 at 30 June of the prior financial year, you can use unused concessional cap from up to 5 prior years. This is the only legal way to contribute well above $32,500 in a single year and still get the full tax deduction — useful when receiving a bonus, capital gain, or career-change payout. Check your unused cap balance in myGov > Super > Information > Carry forward concessional contributions before 30 June each year. The FY2020–21 unused cap expires on 30 June 2026.
The superannuation guarantee (SGC) rate for 2026–27 is 12.0% of ordinary time earnings. Your employer is legally required to pay this directly into your nominated super fund. This is the final legislated rate — the staged increase schedule completed on 1 July 2025, and no further rises are currently scheduled. Check your payslip or myGov to confirm your employer is paying the correct rate on time.
The concessional contributions cap for 2026–27 is $32,500 per financial year — up from $30,000 in 2025–26, effective 1 July 2026. This cap includes all pre-tax contributions: employer super (SGC), salary sacrifice, and personal deductible contributions. Contributions within this cap are taxed at just 15% inside super — well below the marginal rate of up to 45%. If you exceed the cap, the excess is included in your assessable income and taxed at your marginal rate plus an excess concessional contributions charge.
Salary sacrifice redirects pre-tax income into your super fund, reducing your taxable income dollar-for-dollar. If you earn $100,000 and sacrifice $10,000, your taxable income drops to $90,000. You avoid paying the 30% Stage 3 marginal income tax rate on that $10,000 — saving $3,000 in income tax. Inside super, the $10,000 is taxed at 15% contributions tax ($1,500). Your net annual saving is $1,500 — effectively 15% on every dollar sacrificed. For earners in the 37% or 45% bracket, the saving is even larger.
For Australians born after 30 June 1964, the preservation age is 60. You can access your super once you reach 60 and retire, or unconditionally at age 65 regardless of employment status. If you are between 60 and 65 and still working, you can begin a transition to retirement (TTR) income stream and draw up to 10% of your super balance per year. Accessing super before preservation age is only permitted in specific circumstances — severe financial hardship, terminal medical condition, or permanent incapacity.
The low income superannuation tax offset (LISTO) is a government payment of up to $500 per year paid directly into your super fund. It applies to individuals with income of $37,000 or less who have concessional contributions made to their super. It effectively refunds the 15% contributions tax paid on concessional contributions, meaning low income earners pay zero tax on their super contributions. The ATO calculates and pays LISTO automatically — no application is required. Combined with the LISTO, low income earners have little to no tax disadvantage when using salary sacrifice or making personal deductible contributions.