How much can I salary sacrifice into super? The concessional cap and how state and industry earnings affect it

How much can I salary sacrifice into super?

Salary sacrifice into super is a way to boost your retirement savings by asking your employer to put some of your pre-tax pay directly into your super fund. The big question is: how much can you actually sacrifice? The answer depends on two things: the legal cap set by the Australian Tax Office, and your own earnings – which vary a lot by state and industry.

The concessional contributions cap

For the 2026-27 financial year, the maximum you can salary sacrifice (plus any employer super guarantee) is $30,000. This is the concessional contributions cap. It applies to all before-tax super contributions, including the 12% super guarantee your employer must pay. So if your employer pays $10,000 in SG, you can salary sacrifice up to $20,000 more to hit the cap.

This cap is the same whether you work in mining in Western Australia or retail in Tasmania. But your ability to reach it depends on your salary. You cannot sacrifice so much that your take-home pay falls below the national minimum wage. The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 annualised (index 48.2). That means if you earn $60,000, you can sacrifice at most $7,745 before you hit the minimum wage floor. If you earn $150,000, you can easily sacrifice up to the full $30,000 cap (minus your SG).

State differences in earnings

Where you live affects how much you earn, and therefore how much room you have to salary sacrifice. The Salary Index shows the national line at 100, which is $108,352 annualised. States above that line give you more headroom.

• ACT (index 109.9, annualised $119,090): High earnings mean you can likely sacrifice the full cap. A typical ACT professional on $119,000 would have SG of about $14,280, leaving $15,720 of cap space for salary sacrifice.
• WA (index 106.9, $115,825): Mining and resources drive wages up. A WA worker on the state average could sacrifice around $13,000 after SG.
• NSW (index 101.2, $109,658): Slightly above the national line. A NSW employee on $109,658 could sacrifice about $12,000 after SG.
• Victoria (index 98, $106,137): Just below the national line. A Victorian on $106,137 could sacrifice roughly $10,000 after SG.
• Queensland (index 97.9, $106,064): Similar to Victoria.
• NT (index 95.2, $103,173): Lower earnings mean less room. A NT worker on $103,173 could sacrifice about $8,000 after SG.
• SA (index 94.6, $102,450): Similar to NT.
• Tasmania (index 88.6, $96,008): The lowest state average. A Tasmanian on $96,008 could sacrifice only about $5,000 after SG, because they need to stay above the minimum wage.

These are averages. Your individual pay may be higher or lower. Check your award or agreement. For more on state pay patterns, see our states page.

Industry differences in earnings

Your industry matters even more than your state. The industries page shows big gaps.

• Mining (index 154.7, $167,600): The highest. A miner on $167,600 gets SG of about $20,112 (capped at the max contribution base of $270,830, but still well under). They can salary sacrifice the remaining $9,888 to hit the $30,000 cap. Or if they have unused carry-forward cap, they could go higher.
• Professional, scientific and technical services (index 114.7, $124,280): A typical professional on $124,280 can sacrifice about $10,000 after SG.
• Education and training (index 105.5, $114,311): A teacher on $114,311 can sacrifice about $8,500 after SG.
• Health care and social assistance (index 97.8, $105,968): A nurse or aged care worker on $105,968 can sacrifice about $6,500 after SG.
• Retail trade (index 75.9, $82,240): A retail worker on $82,240 gets SG of $9,869, leaving only $20,131 of cap space. But they also need to stay above the minimum wage. After SG, their before-sacrifice pay is $82,240. To stay above $52,255, they can sacrifice at most $29,985 – but the cap limits them to $20,131. So the cap is the binding constraint here.
• Accommodation and food services (index 72.5, $78,555): The lowest. A hospitality worker on $78,555 can sacrifice at most $18,555 after SG, but must also keep pay above minimum wage. The minimum wage floor ($52,255) allows sacrifice of up to $26,300, but the cap limits it to $18,555.

How the cap works with your pay

To work out your personal limit, follow these steps:

1. Find your annual gross salary (before tax and sacrifice).
2. Calculate your employer's super guarantee: 12% of your ordinary time earnings, up to $270,830.
3. Subtract that SG from the $30,000 cap. The result is the maximum you can salary sacrifice.
4. Check that your after-sacrifice salary (gross minus sacrifice) is not below the national minimum wage ($52,255). If it is, you must reduce your sacrifice.

For example, a retail manager in Queensland earning $85,000 (above the retail average) would have SG of $10,200. Cap space: $30,000 - $10,200 = $19,800. After-sacrifice salary: $85,000 - $19,800 = $65,200, well above the minimum wage. So they can sacrifice the full $19,800.

A part-time hospitality worker in Tasmania earning $55,000 would have SG of $6,600. Cap space: $23,400. But after-sacrifice salary would be $55,000 - $23,400 = $31,600, below the minimum wage. So they can only sacrifice $2,745 (to stay at $52,255). The cap is not the limit – the minimum wage is.

Tax benefits of salary sacrifice

Salary sacrifice reduces your taxable income, so you pay less income tax. For a resident in 2026-27, the tax-free threshold is $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above. Plus the 2% Medicare levy. By sacrificing, you shift income from your marginal rate to the 15% super tax rate (or 30% if you earn over $250,000). This is most valuable for higher earners.

For example, a mining worker in WA on $167,600 is in the 37% bracket (plus 2% Medicare). Sacrificing $9,888 saves $3,857 in tax (39% of $9,888). The super fund pays 15% tax on the contribution, so net benefit is about $2,374. Over time, that adds up.

Other rules to know

• You can only salary sacrifice if your employer offers it. Not all do.
• The cap includes all concessional contributions across multiple jobs. If you have two jobs, total SG and sacrifice must stay under $30,000.
• If you exceed the cap, the excess is taxed at your marginal rate plus an interest charge. You can elect to release up to 85% of the excess from super.
• The super guarantee maximum contribution base ($270,830) means SG is not paid on earnings above that, but you can still salary sacrifice on those earnings up to the cap.

For more detail on how the index works, see how the index works. For a broader look at pay topics, visit topics.

Summary

The simple answer to “how much can I salary sacrifice into super” is up to $30,000 in 2026-27, minus your employer’s super guarantee. But your actual ability depends on your salary, which varies by state and industry. High earners in mining in WA or ACT can easily hit the cap. Low earners in hospitality in Tasmania may only sacrifice a few thousand. Use the state and industry indices on this site to gauge where you sit, and always check your award or agreement to ensure you don’t fall below minimum pay rates.