Why it can save tax
Money you salary sacrifice is generally taxed at 15% in your fund, instead of your marginal tax rate. For many people that is a real difference. If your income plus contributions is over $250,000, Division 293 can lift the rate to 30%.
The cap
Salary sacrifice, employer super guarantee and personal deductible contributions all count toward the concessional cap of $32,500 for 2026–27. Go over it and the excess is taxed at your marginal rate (less a 15% offset).
Things to check
- Ask in writing, and only for future pay. Sacrifice must be agreed before you earn it.
- Your employer must not reduce your super guarantee because you sacrifice.
- Under Payday Super, contributions should land with each pay; check they do.
- The money is locked away until you meet a condition of release, generally from 60.
Salary sacrifice or a personal deductible contribution?
If your employer doesn’t offer it, you can make a personal contribution and claim a deduction, as long as you lodge a notice of intent with your fund first. The tax result is broadly similar.
Not sure how much to sacrifice? Book a no-obligation chat or try our calculators.
Quick answers
How much can I salary sacrifice into super in 2026–27?
Up to the $32,500 concessional cap, less your employer contributions, unless you can use carry-forward amounts.
Is salary sacrifice worth it?
Often, for people whose marginal tax rate is above 15%, but it reduces take-home pay and the money is preserved.
Sources
General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules and thresholds change; check the sources above. Past performance is not a reliable indicator of future performance. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is authorised under Financial Force Pty Ltd AFSL 238337. Shay has been authorised since 18 October 2011.