Salary sacrifice into super: the 2026–27 cap and how much you save
Putting pre-tax pay into super can save you hundreds or thousands of dollars a year in tax. Here are the 2026–27 limits and what it's worth at different incomes.
Key points
- The concessional cap is $32,500 from 1 July 2026, including your employer's 12%.
- Salary sacrificed super is taxed at 15% instead of your marginal rate.
- Unused cap from the past five years can be used if your balance was under $500,000.
- Division 293 lifts the tax to 30% when income plus contributions exceeds $250,000.
- On $100,000, sacrificing $5,200 a year leaves you about $884 a year ahead.
Salary sacrificing into super means asking your employer to pay some of your salary straight into your super fund before tax. It's one of the simplest legal ways to cut your tax bill and boost your retirement savings at the same time. Here's how it works in 2026–27, how much you can put in and what you really save.
Calculate your salary sacrifice
How the tax saving works
Pay you take home is taxed at your marginal rate, plus 2% Medicare levy. Money you salary sacrifice goes into super instead and is taxed at 15% when it reaches your fund. The difference is your saving.
| Taxable income | Your tax rate (incl. Medicare) | Tax in super | Saving per $1,000 |
|---|---|---|---|
| $18,201 – $45,000 | 17% | 15% | About $20 (often less, after offsets) |
| $45,001 – $135,000 | 32% | 15% | $170 |
| $135,001 – $190,000 | 39% | 15% | $240 |
| Over $190,000 | 47% | 15% (30% if Division 293 applies) | $320 ($170 with Division 293) |
2026–27 resident rates. The 15% bracket for $18,201–$45,000 applies from 1 July 2026 (it was 16%).
What you save in practice
These figures come from our salary sacrifice calculator. "You come out ahead" is the extra money in super minus the take-home pay you give up.
| Salary | Sacrificed per year | Take-home pay given up | Added to super after 15% tax | You come out ahead |
|---|---|---|---|---|
| $60,000 | $2,600 | $1,729 | $2,210 | $481 |
| $80,000 | $5,200 | $3,536 | $4,420 | $884 |
| $100,000 | $5,200 | $3,536 | $4,420 | $884 |
| $100,000 | $10,000 | $6,800 | $8,500 | $1,700 |
| $150,000 | $14,500 | $8,845 | $12,325 | $3,480 |
Example: on $100,000, sacrificing $200 a fortnight ($5,200 a year) reduces your take-home pay by about $3,536, but adds $4,420 to your super. You're $884 better off each year, before investment returns.
The concessional contributions cap for 2026–27
From 1 July 2026, the concessional contributions cap is $32,500 (up from $30,000 in 2025–26). It covers all before-tax contributions:
- your employer's super guarantee (12% of your ordinary earnings),
- salary sacrifice, and
- personal contributions you claim as a tax deduction.
On a $100,000 salary, your employer already contributes $12,000, leaving $20,500 of room for salary sacrifice. Your employer must still pay super guarantee on your full salary before the sacrifice.
The non-concessional (after-tax) cap is $130,000 for 2026–27.
Carry-forward: using unused cap from earlier years
If your total super balance was under $500,000 on 30 June 2026, you can add unused concessional cap amounts from up to the previous five financial years to this year's cap. Unused amounts expire after five years, and the oldest are used first. The ATO tracks your available amounts in ATO online services (via myGov), under Super › Information › Carry forward concessional contributions.
Carry-forward is especially useful in a year with a large capital gain, a bonus, or after a career break, because you can make a big deductible contribution and reduce your tax that year.
Division 293: high earners pay 30%
If your income plus your concessional contributions is more than $250,000, Division 293 tax adds an extra 15% to some or all of your concessional contributions, taking the tax in super to 30%. It applies to the smaller of your contributions and the amount you're over $250,000. Salary sacrifice can still save tax, because 30% is less than the 47% top marginal rate including Medicare, but the gap is smaller.
Separately, from 1 July 2026 people with total super balances over $3 million pay extra tax on earnings attributable to the amount above $3 million (Division 296). It doesn't affect most people.
Things to weigh up
- Access. Super is generally locked away until you reach preservation age (60) and retire, or meet another condition of release. Don't sacrifice money you may need for a home deposit or emergencies, unless you plan to use the First Home Super Saver Scheme.
- Low incomes. Below about $45,000, the saving is small. The low income super tax offset refunds the 15% contributions tax (up to $500) for adjusted taxable incomes up to $37,000, and after-tax contributions may attract the government co-contribution.
- HECS-HELP and Centrelink. Salary sacrificed super is a reportable super contribution, so it's added back for HELP repayments and many income tests.
- Going over the cap. Excess concessional contributions are taxed at your marginal rate, less a 15% offset. Check your employer's contributions before you increase your sacrifice.
- Alternatives. If your employer doesn't offer salary sacrifice, you can make a personal contribution and claim a deduction by lodging a notice of intent with your fund before you lodge your tax return.
Frequently asked questions
How much can I salary sacrifice into super in 2026–27?
Up to the $32,500 concessional cap, minus your employer's super guarantee and any other concessional contributions. You may be able to add unused amounts from the past five years if your balance was under $500,000 on 30 June 2026.
Is salary sacrifice worth it on a $100,000 salary?
Usually yes. Sacrificing $5,200 a year costs about $3,536 in take-home pay and adds $4,420 to super, so you're about $884 a year ahead.
What is Division 293 tax?
An extra 15% tax on concessional super contributions for people whose income plus concessional contributions is over $250,000. It takes the tax on those contributions from 15% to 30%.
Sources
- ATO: contributions caps
- ATO: concessional contributions cap and carry-forward
- ATO: Division 293 tax
- ATO: better targeted superannuation concessions (Division 296)
- Moneysmart: super contributions
More guides
Last reviewed October 2026. This guide is general information only. It isn't financial, tax, credit or legal advice and doesn't consider your circumstances. Rules change, so check the official sources below or speak to a licensed professional before you make a decision.