Salary sacrifice in 2026: how much tax you really save
The concessional cap rose to $32,500 on 1 July. We worked out what sacrificing $5,000 does to your pay and your super.
From 1 July 2026, the concessional contributions cap is $32,500, up from $30,000 (ATO). That's the yearly limit on before-tax money going into your super, and it includes your employer's 12% super guarantee.
How salary sacrifice saves tax
When you salary sacrifice, part of your pay goes to super before tax. Inside super it's taxed at 15% instead of your marginal rate, which is 32% including Medicare for most people earning $45,000 to $135,000. The gap is your saving.
Sacrificing $5,000 a year
| Salary | Cap space after employer super | Take-home drops by | Super rises by | You're ahead by |
|---|---|---|---|---|
| $60,000 | $25,300 | $3,325 | $4,250 | $925 |
| $85,000 | $22,300 | $3,400 | $4,250 | $850 |
| $100,000 | $20,500 | $3,400 | $4,250 | $850 |
| $120,000 | $18,100 | $3,400 | $4,250 | $850 |
| $150,000 | $14,500 | $3,050 | $4,250 | $1,200 |
| $200,000 | $8,500 | $2,650 | $4,250 | $1,600 |
2026–27 resident rates, Medicare and low income tax offset, no HELP. Super rises by $5,000 less 15% contributions tax. Cap space is $32,500 minus 12% employer super.
The higher your tax bracket, the bigger the win. On lower incomes the benefit shrinks, and under about $45,000 it can be close to nothing, so the government co-contribution may suit you better.
Watch out for
Going over the cap. Employer super, salary sacrifice and any personal contributions you claim all count toward $32,500. Excess is taxed at your marginal rate.
Division 293. If your income plus concessional contributions is over $250,000, an extra 15% applies to contributions.
Access. Money in super is locked away until you meet a condition of release, usually retirement.
General information only. Consider getting advice about your situation before changing contributions.
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