Salary Sacrifice Australia 2026-27: Super and Benefits
Tax saving from $5,000 salary sacrifice to super
Super concessional contributions cap: $30,000 per year (2026-27), including employer Super Guarantee. Employer SG rate: 12% from 1 July 2026.
| Gross salary | Marginal rate | Tax in super | Annual saving |
|---|---|---|---|
| $60,000 | 32.5% | 15% | $875 |
| $80,000 | 32.5% | 15% | $875 |
| $100,000 | 32.5% | 15% | $875 |
| $120,000 | 32.5% | 15% | $875 |
How salary sacrifice works
You agree with your employer to forgo a portion of future salary in exchange for contributions to your nominated super fund. The sacrificed amount never reaches your bank account and is not included in your taxable income. It is taxed at 15% when it enters the super fund, rather than at your marginal rate.
The concessional contributions cap of $30,000 covers both salary sacrifice and employer Super Guarantee contributions combined. If your employer contributes 12% on a $60,000 salary ($7,200), you have $22,800 of cap remaining for salary sacrifice.
Division 293 tax for high earners
If your income plus concessional contributions exceed $250,000, an additional 15% Division 293 tax applies to concessional contributions. This brings the effective tax on those contributions to 30%, still below the 45% top marginal rate, so salary sacrifice remains beneficial even for high earners.
FBT-exempt benefits
Beyond super, salary sacrifice can cover portable electronic devices (laptops, phones, tablets) for work use, which are exempt from Fringe Benefits Tax when provided for primary work use. Most other benefits attract FBT and the employer typically passes the cost back to the employee, reducing the saving.
Novated leases
A novated lease lets you package a vehicle through your employer using pre-tax dollars. Under the Electric Vehicle FBT exemption (for eligible zero or low-emission vehicles below the luxury car tax threshold), the lease payments and running costs can be entirely salary sacrificed, producing significant tax savings.
Frequently asked questions
How much can I salary sacrifice into super in 2026-27?
The concessional contributions cap is $30,000 per year in 2026-27, inclusive of your employer Super Guarantee contributions. If your employer pays the full 12% SG on a $100,000 salary ($12,000), you can salary sacrifice up to $18,000 more before hitting the cap.
Does salary sacrifice reduce my employer super contributions?
Your employer must calculate the Super Guarantee on your ordinary time earnings, which is your base salary before salary sacrifice for most employees. Check your employment contract, as some employers calculate SG on the reduced salary under a "total remuneration" arrangement.
What happens if I exceed the concessional contributions cap?
Contributions above the $30,000 cap are included in your assessable income and taxed at your marginal rate, with a 15% tax offset to avoid double taxation. Excess contributions are not forced back to you but are taxed as income.
Source: ATO concessional contributions; Division 293 tax; FBT employer guide. Calculations assume 2026-27 rates with 12% SG. Last updated 2026-11-04.