Australian super guide

How salary sacrifice into super affects take-home pay

Salary sacrifice can reduce the cash salary taxed through payroll and add an extra contribution to super, but its value depends on your tax position and contribution limits.

The basic trade-off

You agree to receive less cash salary, with the employer contributing that amount to your super fund instead. Because the contribution is generally taxed in the fund, the immediate reduction in take-home pay can be lower than the amount added to super.

Important checks before changing it

Confirm whether an amount is additional to your ordinary employer super, whether it changes the basis for other benefits, and how it counts toward concessional contribution caps. You should also consider preservation rules: super is not normally available to spend straight away.

Use an estimate, then verify

Our calculator provides an indicative comparison only. Read the ATO's salary sacrificing super guidance and speak with your employer or a qualified adviser where needed.