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Calculate your salary sacrifice tax saving, check your contribution caps, and see the correctly-modelled Division 293 tax and retirement balance impact.
Updated: 7 August 2026 · Reviewed by Mohsin Iqbal · 15 min read
Your Super Details
Financial year
Annual salary (before sacrifice)
$
Extra salary sacrifice (pa)
$
Age
yrs
Current super balance
$
Prior year unused CC cap (carry-forward)
$
Carry-forward and bring-forward eligibility also depend on your total super balance at the previous 30 June — see the eligibility note below.
Non-concessional (after-tax) contribution
$
Government Co-contribution (optional)
Personal after-tax contribution for co-contribution
📊 Compare: No Sacrifice vs Current vs Maxed-Out Cap
Scenario
Extra Sacrifice
Net Tax Saving
Take-Home Reduction
Retirement projection assumes:
A constant annual investment return (real returns vary year to year)
No adjustment for inflation — the projected figure is in future, not today's, dollars
No fund fees or insurance premiums deducted
No future legislative or contribution cap changes over the projection period
Age-based contribution rules:
Under 75: can generally make both concessional and non-concessional contributions
67 to 74: no longer need to meet a work test for most contribution types since recent reforms, but some restrictions can still apply — check current rules
75 and over: generally can only receive mandated employer SG contributions, not voluntary ones
Co-contribution eligibility ends at age 71
Estimates only — not financial or tax advice. Confirm your exact position with the ATO or a registered tax agent.
⏱️ Last reviewed: 7 August 2026 · Written and reviewed by Mohsin Iqbal under our editorial policy and calculation methodology. Contribution caps are indexed to wages (AWOTE) and reviewed each 1 July — always confirm current figures with the ATO.
📖 Approx. 15 min read💰 ATO-verified caps · 2026–27 tax🔄 Updated 7 August 2026
For 2026–27, the concessional (before-tax) cap is $32,500 and the non-concessional (after-tax) cap is $130,000 — both up from $30,000/$120,000 in 2025-26.
Salary sacrifice is taxed at just 15% inside super, versus up to 47% at your marginal rate — the tax saving is the gap between the two, not the full sacrificed amount.
Division 293 tax applies 15% to the lesser of your total concessional contributions or the amount your income plus contributions exceeds $250,000 — not simply 15% of your whole contribution.
The amount that actually lands in super and compounds for retirement is your contribution after the 15% contributions tax, not the pre-tax amount you sacrificed.
If your total super balance is under $500,000, you can carry forward unused concessional cap from the previous 5 years for a one-off larger contribution.
Quick Answer
Salary sacrifice reduces your taxable income and redirects the amount into super, taxed at 15% instead of your marginal rate — the net saving is the gap between the two. On a $110,000 salary sacrificing an extra $10,000 (2026–27), the income tax saved is about $3,200, the 15% contributions tax is $1,500, for a net annual saving of about $1,700. The concessional cap is $32,500 (2026–27) including employer SG, and the non-concessional cap is $130,000. Use the calculator above with your own figures, including any carry-forward or non-concessional contributions, for an exact result.
Concessional vs Non-Concessional Contributions
Concessional contributions are made from pre-tax income and taxed at 15% inside your super fund — lower than most people's marginal tax rate. They include employer Superannuation Guarantee (SG) contributions, salary sacrifice, and personal contributions you claim as a tax deduction. Non-concessional contributions come from after-tax income, receive no upfront tax deduction, and aren't taxed again on entry — but once inside super, investment earnings are taxed at just 15% rather than your marginal rate.
ℹ️ The concessional and non-concessional caps rose on 1 July 2026 — the non-concessional cap is always exactly 4× the concessional cap. If you're comparing to information published before this date, you're likely looking at the 2025–26 figures.
How Salary Sacrifice Works
Salary sacrifice redirects part of your pre-tax salary into your super fund, reducing your taxable income and therefore your income tax. The sacrificed amount is taxed at a flat 15% inside the fund instead of your marginal rate. Your take-home pay drops by less than the full sacrifice amount, because you're also paying less income tax on the reduced taxable income — the calculator above shows this split directly.
Personal Deductible Contributions
If you're self-employed, between jobs, or simply prefer not to arrange salary sacrifice with an employer, you can make a personal contribution to super and then claim it as a tax deduction — subject to the same concessional cap. You must submit a "Notice of Intent to Claim a Deduction" to your super fund and receive their acknowledgement before lodging your tax return, or before withdrawing or rolling over the contribution — whichever comes first.
Carry-Forward Rule (Unused Concessional Cap)
If your total super balance was under $500,000 on 30 June of the prior year, you can carry forward unused concessional cap space from the previous 5 financial years, allowing a larger one-off concessional contribution above the standard annual cap. This is particularly useful after a career break, a large bonus year, or when selling an asset and wanting to shelter some of the gain inside super. Enter your unused prior-year cap into the calculator above to see the effect.
Bring-Forward Rule (Non-Concessional Cap)
Separately from carry-forward, the bring-forward rule lets eligible individuals under 75 contribute up to 3 years of non-concessional cap in a single year — $390,000 for 2026–27 — if their total super balance was below the relevant threshold on the prior 30 June. This calculator flags if your entered non-concessional contribution exceeds the standard annual cap, but doesn't automatically apply bring-forward eligibility — check your total super balance against current ATO thresholds first.
Division 293 Tax
Division 293 applies an additional 15% tax for individuals whose income plus concessional contributions exceeds $250,000 — but not simply 15% of your whole contribution. The correct calculation is 15% of the lesser of your total concessional contributions or the amount by which your income plus contributions exceeds the threshold. This calculator implements that exact formula, verified against the ATO's own published worked examples. See our Division 293 Calculator for a dedicated breakdown.
Exceeding the concessional cap means the excess is added to your assessable income and taxed at your marginal rate, with a 15% tax offset for the contributions tax already paid in the fund — you can also choose to withdraw up to 85% of the excess from super. Exceeding the non-concessional cap without a valid bring-forward arrangement can trigger tax at up to 47% on the excess, unless you withdraw it (plus associated earnings) before the ATO assesses it.
Super Contributions for Self-Employed and Contractors
Self-employed people and many contractors don't receive automatic SG contributions, so building super requires deliberate action — either personal deductible contributions or voluntary non-concessional contributions. See our Contractor vs Employee Calculator for how superannuation fits into the broader financial comparison between contracting and employment.
The second example shows why Division 293 matters for higher earners — the net saving shrinks dramatically once the additional 15% applies, though it's still calculated on the correct "lesser of" basis rather than the full contribution. Use the calculator above with your own figures for an exact result.
Common Mistakes
Assuming Division 293 tax is 15% of your entire contribution. It's 15% of the lesser of your contributions or the amount you're over the threshold — often much less than the full contribution.
Projecting retirement balance using the pre-tax sacrifice amount. Only the amount after 15% contributions tax actually lands in your fund and compounds.
Forgetting employer SG counts toward the concessional cap. Salary sacrifice space is the cap minus your SG, not the full cap.
Confusing carry-forward (concessional) with bring-forward (non-concessional). These are two separate mechanisms with different eligibility rules.
Using last year's caps. Both caps increased on 1 July 2026 — always confirm which financial year applies.
Frequently Asked Questions
Pre-tax contributions taxed at 15% inside your super fund — including employer SG, salary sacrifice, and personal contributions you claim as a tax deduction. All count toward the same annual cap.
After-tax contributions that receive no upfront tax deduction and aren't taxed again on entry to super, subject to their own separate annual cap.
For 2026–27: up to $32,500 in concessional contributions (including employer SG) and up to $130,000 in non-concessional contributions, before extra tax applies — more if you're eligible for carry-forward or bring-forward.
$32,500 for 2026–27 ($30,000 for 2025–26) — the maximum before-tax contributions (employer SG, salary sacrifice and deductible personal contributions combined) before excess tax applies.
$130,000 for 2026–27 ($120,000 for 2025–26) — the maximum after-tax personal contributions before excess tax applies, unless you're using the bring-forward rule.
Yes, for concessional contributions, if your total super balance was under $500,000 on the prior 30 June — you can use unused cap space from the previous 5 financial years in a single higher-contribution year.
You arrange with your employer to redirect part of your pre-tax salary into super instead of your pay. It's taxed at 15% in the fund instead of your marginal rate, reducing your taxable income and your income tax.
Yes, if you submit a valid Notice of Intent to Claim a Deduction to your fund and receive acknowledgement before lodging your return. The contribution then counts as concessional, subject to the same cap.
Yes, if claimed as a deduction — they reduce your taxable income the same way salary sacrifice does, subject to the concessional cap and the 15% contributions tax inside the fund.
An additional 15% tax for individuals whose income plus concessional contributions exceeds $250,000, applied to the lesser of your total concessional contributions or the amount you're over the threshold — not your full contribution.
The excess is added to your assessable income and taxed at your marginal rate, with a 15% offset for tax already paid in the fund. You can choose to withdraw up to 85% of the excess from super.
Without a valid bring-forward arrangement, the excess can be taxed at up to 47%, unless you withdraw it (plus associated earnings) before the ATO assesses it.
Yes — self-employed people can make personal contributions and claim them as a tax deduction, subject to the concessional cap, using the same Notice of Intent process as anyone else.
Yes — genuine contractors can make personal concessional or non-concessional contributions the same way employees or self-employed people can, since they generally don't receive automatic employer SG.
Yes — some employers offer additional employer contributions or facilitate salary sacrifice arrangements above the mandatory 12% SG rate, all counting toward the same concessional cap.
Ideally with enough buffer before 30 June for your fund to receive and process the contribution — many funds recommend contributing at least a few business days before the deadline to ensure it's counted in the correct financial year.
It's generally more valuable the higher your marginal tax rate, since the gap between your marginal rate and the 15% contributions tax is where the saving comes from. For very low incomes, the benefit can be minimal or negative — use the calculator above to check your specific position.
Carry-forward applies to concessional (before-tax) contributions, using unused cap from the previous 5 years. Bring-forward applies to non-concessional (after-tax) contributions, pulling forward up to 3 years of future cap into the current year. They're separate mechanisms with different eligibility rules.
The Low Income Super Tax Offset — up to $500 a year, automatically refunded to your super fund if your income is $37,000 or less, effectively offsetting the 15% contributions tax on concessional contributions for low-income earners.
Yes — employer Superannuation Guarantee contributions count toward the same concessional cap as salary sacrifice and personal deductible contributions, all combined.
It's indexed to Average Weekly Ordinary Time Earnings (AWOTE) in $2,500 increments, so it doesn't rise every single year — it moves when indexation crosses a threshold, as it did between 2025-26 ($30,000) and 2026-27 ($32,500).
No — this question conflates contributing to super with withdrawing it. Contributions can be made at any time (subject to age and work test rules); early access to withdraw super is only permitted in specific, limited circumstances.
No — sacrificed amounts are removed from your taxable salary before income tax is calculated, then taxed once at 15% inside super. You don't pay both your marginal rate and the 15% contributions tax on the same dollar.
Your Division 293 income is broader than taxable income alone — it generally includes taxable income, reportable fringe benefits, and certain investment losses, plus your concessional contributions.
This calculator uses official ATO-published tax brackets, contribution caps and the verified Division 293 "lesser of" formula for 2026–27 and 2025–26. It's a planning estimate — for your exact position, especially around bring-forward eligibility and total super balance thresholds, consult a registered tax agent or financial adviser.
Salary sacrifice into super saves you the gap between your marginal tax rate and the 15% contributions tax — genuinely valuable, but not the full sacrificed amount. Concessional and non-concessional contributions are capped separately, both indexed and raised for 2026–27, with carry-forward and bring-forward rules offering flexibility for larger one-off contributions. High earners should watch Division 293, calculated correctly as the lesser of contributions or the excess over $250,000. Use the calculator above with your own figures for an accurate, year-specific result.