‘Sacrificing’ your salary isn’t as scary as it sounds. Put simply, it’s when some of the salary that would usually go to your regular pay packet is diverted to your super instead.
Because it’s directly taken out of your salary before you’ve paid income tax, the super is taxed at 15% not your marginal tax rate (which could be up to 47%).
It could reduce your taxable income too, so this calculator helps you see how much you could benefit by salary sacrificing your super contributions.
1. This represents the amount you’ve nominated as a salary sacrifice contribution, less 15% contribution tax deducted by the fund. Rounding may vary slightly in some calculations.
2. This represents the difference between net take home pay and super balance.
Points to consider
Contribution amounts are concessional (before-tax) contributions. Contribution caps apply.
You should check with your employer to confirm you’re eligible to salary sacrifice superannuation contributions. Have a read through the Accumulation Account Guide on our website for further details. You should seek personal advice before making a decision.
We’ve prepared this salary sacrifice calculator for general information purposes only. It’s based on 2015/2016 marginal tax rates, our interpretation of tax laws, and includes the Medicare Levy. It uses the relevant PAYG withholding tax coefficients to calculate the tax payable. Rounding will occur which may cause a variance to actual tax paid. This may differ from your final tax liability for the financial year.
If you have an Accumulation account, you’ll need to be aware of the 15% contributions tax, which applies to salary sacrifice contributions as they are paid into superannuation. From 1 July 2017, if your adjusted income1 exceeds $250,000, a tax rate of 30% will apply to concessional contributions above the $250,000 threshold. The contributions tax is not included in the above calculation and therefore less money than indicated would actually accumulate in your account. However, you can increase your superannuation benefits by making additional voluntary contributions (just make sure you don't go over the contributions cap though).
1. For the purposes of the contributions tax for high income earners, adjusted income includes taxable income (assessable income less deductions), net investment losses, net investment property losses, total reportable fringe benefit amounts, amounts on which family trust distribution tax has been paid and concessional contributions within the concessional contribution cap.
The calculator doesn’t replace personal financial advice and you should seek specific professional advice prior to acting on any information. We also recommend you read our disclaimer.