Salary Sacrifice Superannuation Calculator 2024

Salary Sacrifice Formula:

\[ \text{Net Salary} = (\text{Gross Salary} - \text{Sacrifice}) - (\text{Tax on Taxable Income} + \text{Medicare Levy}) \]

Taxable Income:

Income Tax:

Medicare Levy:

Net Salary:

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1. What is Salary Sacrifice?

Salary sacrifice (salary packaging) is an arrangement where you agree to receive less take-home pay in exchange for your employer contributing more to your superannuation. These contributions are taxed at 15% (if under concessional cap) rather than your marginal tax rate.

2. How the Calculator Works

The calculator uses the formula:

\[ \text{Net Salary} = (\text{Gross Salary} - \text{Sacrifice}) - (\text{Tax on Taxable Income} + \text{Medicare Levy}) \]

Where:

Gross Salary — Your total annual salary before any deductions
Sacrifice Amount — The amount you choose to contribute to super
Taxable Income — Gross salary minus sacrifice amount
Income Tax — Calculated based on Australian 2024 tax brackets
Medicare Levy — 2% of taxable income

3. Benefits of Salary Sacrifice

Details: Salary sacrificing can reduce your taxable income, potentially lowering your tax bracket and increasing your retirement savings. The sacrificed amount is taxed at 15% in super (for amounts under the concessional contributions cap).

4. Using the Calculator

Tips: Enter your gross annual salary and the amount you wish to sacrifice to super. The calculator will show your reduced taxable income, tax savings, and new take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What's the maximum I can salary sacrifice?
A: For 2024, the concessional contributions cap is $27,500 (includes employer contributions). Excess amounts may be taxed at your marginal rate.

Q2: Does salary sacrifice affect my super guarantee?
A: No, your employer must still pay 11% super guarantee on your original gross salary.

Q3: Is salary sacrifice right for everyone?
A: It's most beneficial for higher income earners. Lower income earners may benefit more from after-tax contributions eligible for government co-contribution.

Q4: How does this compare to personal contributions?
A: Salary sacrifice contributions are taxed at 15% in super. Personal after-tax contributions aren't taxed in super but don't reduce your taxable income.

Q5: Can I access sacrificed amounts before retirement?
A: Generally no - super is preserved until you meet a condition of release (retirement after preservation age, severe financial hardship, etc.)