
Salary sacrificing into super can reduce your income tax today while boosting your retirement balance. This guide explains how it works, key limits, and how to model your numbers using our [Salary Sacrifice Calculator](/calculators/salary-sacrifice).

## Quick recap: how salary sacrifice works
- You ask your employer to redirect part of your pre-tax pay into super.
- Those contributions are generally taxed at 15% in super (or 30% if Div 293 applies).
- Your taxable income falls by the sacrificed amount, which can lower income tax and Medicare levy.
- Contributions count toward the concessional cap (employer SG + salary sacrifice).

## Key numbers to know
- **General concessional cap:** $30,000 per financial year (includes employer SG and salary sacrifice).
- **Contributions tax:** 15% (or 30% if your income for Div 293 exceeds $250,000).
- **Medicare levy surcharge (MLS):** still based on your taxable income after sacrifice.
- **Preservation:** money in super is locked until you meet a condition of release.

## Pros and trade-offs
**Pros**
- Lower taxable income and potentially lower tax.
- More going into super at a concessional rate.
- Automated, "set and forget" saving.

**Trade-offs**
- Reduced take-home pay now.
- Contributions are preserved until retirement conditions are met.
- Caps apply; excess contributions can be clawed back.

## How to size your sacrifice
1) Find your employer's SG amount (pay slip or HR).  
2) Subtract SG from the $30k concessional cap to see headroom.  
3) Decide how much you can give up in take-home pay.  
4) Check MLS and Div 293 thresholds if relevant.  
5) Model it with our [Salary Sacrifice Calculator](/calculators/salary-sacrifice).

## Model your numbers
Use the calculator to see:
- Change in take-home pay per pay period.
- Extra going into super after contributions tax.
- Projected super balance over your chosen timeframe.

Use the [Salary Sacrifice Calculator](/calculators/salary-sacrifice) to plug in your pay, frequency, and sacrifice amount.

## Common pitfalls to avoid
- **Exceeding the cap:** Include employer SG when calculating headroom.
- **Forgetting Div 293:** If income + reportable contributions exceed $250k, contributions tax can lift to 30%.
- **Cashflow shock:** Start small (e.g., $50-$100 per pay) and scale up.
- **Missing review:** Revisit each July or after pay rises/bonuses.

## Frequently asked questions
**Does salary sacrifice affect my HELP repayment?**  
Yes. HELP is based on your "repayment income," which adds reportable super contributions back.

**Can I stop or change the amount?**  
Usually yes - ask payroll. Many employers let you adjust each pay cycle.

**What if I'm close to retirement?**  
Salary sacrifice can still help; just watch the cap and ensure contributions hit before 30 June.

## Next steps
- Decide a trial amount you can spare from take-home pay.
- Confirm employer SG and cap headroom.
- Run your numbers with the [Salary Sacrifice Calculator](/calculators/salary-sacrifice).
- Set a reminder to review each financial year.

Happy sacrificing - and enjoy the tax win today while boosting tomorrow's balance.


#concessional cap

Salary Sacrifice Into Super: How It Works (With Calculator)