1. What is Salary Sacrifice Super?

Salary sacrifice is an arrangement where you agree to receive less take-home pay in return for your employer paying extra into your super fund. This calculator helps you determine how much super you'll receive after salary sacrifice.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Gross\ Pay \) — Your total annual salary before tax (AUD)
• \( Sacrifice\ Amount \) — Amount you choose to sacrifice to super (AUD)
• \( Super\ Rate \) — The super guarantee rate (e.g., 0.11 for 11%)

Explanation: The equation calculates your employer super contribution based on your salary after the sacrificed amount.

3. Importance of Salary Sacrifice

Details: Salary sacrificing into super can be tax-effective as contributions are generally taxed at 15% (for most people), which may be lower than your marginal tax rate. It's a way to boost your retirement savings.

4. Using the Calculator

Tips: Enter your gross annual salary in AUD, the amount you wish to sacrifice, and the current super guarantee rate (11% = 0.11 in 2025). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the current super guarantee rate in Australia?
A: As of 2025, the rate is 11%. It's scheduled to increase to 12% by 2025.

Q2: Are there limits to salary sacrifice contributions?
A: Yes, there are annual concessional contribution caps ($27,500 in 2023-24, including employer contributions).

Q3: Is salary sacrifice right for everyone?
A: It depends on your financial situation. Generally beneficial if your marginal tax rate is above 15%, but consider your short-term cash flow needs.

Q4: How does salary sacrifice affect take-home pay?
A: It reduces your taxable income, so while your take-home pay decreases, more goes into your super at a lower tax rate.

Q5: Can I access salary sacrificed amounts before retirement?
A: Generally no, super is preserved until you meet a condition of release (e.g., retirement after preservation age).