Example
Sarah earns $120,000, so her marginal rate is 30% plus the 2% Medicare levy. She salary sacrifices $10,000 a year.
| Taken as salary | Salary sacrificed | |
|---|---|---|
| Amount | $10,000 | $10,000 |
| Tax | $3,200 | $1,500 |
| What she keeps | $6,800 in the bank | $8,500 in Super |
Sarah has $1,700 more working for her each year. The concessional cap is $32,500 for 2026–27 and includes your employer's 12% Super guarantee, salary sacrifice and personal deductible contributions. If your balance was under $500,000 on 30 June 2026, you can carry forward unused cap from the previous five years.
Whether it suits you depends on your marginal tax rate, when you'll need the money, and your cash flow and debts.
Where people get caught out
- Exceeding the cap. Employer contributions count too.
- Earning over $250,000, where Division 293 adds an extra 15% on contributions.
- Locking away money they'll need before 60.
Find out how much you could save →
Fill in this short form and I'll give you a call.