How much you can salary sacrifice into super in 2026-27

How much you can salary sacrifice into super in 2026-27

When you read a job ad, you might see "salary sacrifice" as a benefit. It lets you put part of your before-tax pay into super, reducing your taxable income. But how much can you salary sacrifice? The answer depends on the concessional contributions cap, your employer's super guarantee, and your pay.

The concessional cap for 2026-27

The Australian Tax Office sets a cap on before-tax super contributions each year. For 2026-27, the cap is $30,000. This includes everything your employer puts in (the super guarantee of 12% from 1 July 2026) plus any salary sacrifice you arrange. So if your employer pays 12% on a salary of $108,352 (the national line from the Salary Index), that's $13,002.24. That leaves $16,997.76 you could salary sacrifice before hitting the cap.

How the cap works with your pay

Your actual salary sacrifice limit is the cap minus your employer's super contributions. If you earn more, the employer contribution is higher, so less room for salary sacrifice. For example, on $150,000, 12% is $18,000, leaving $12,000 for salary sacrifice. On $80,000, 12% is $9,600, leaving $20,400. The maximum contribution base for super guarantee is $270,830, so the maximum SG is $32,499.60, which is above the cap, so you cannot salary sacrifice at all if you earn above about $250,000.

Comparing job offers with salary sacrifice

When you compare two offers, look at the base salary and whether salary sacrifice is available. Use the pay guides to see typical pay in your industry. For example, a professional role in Professional, scientific and technical has an index of 114.7, meaning a typical base of $124,300. With 12% SG, that's $14,916, leaving $15,084 for salary sacrifice. In Retail trade (index 75.9, base $82,200), SG is $9,864, leaving $20,136 for salary sacrifice. But retail roles may not offer salary sacrifice as often.

Tax benefits of salary sacrifice

Salary sacrifice reduces your taxable income, so you pay less tax. For 2026-27, tax brackets are: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above. Plus 2% Medicare levy. If you earn $108,352 and salary sacrifice $10,000, your taxable income drops to $98,352, saving $3,000 in tax (30% bracket) plus $200 Medicare levy. Your take-home pay falls by $10,000 minus $3,200 = $6,800, but your super grows by $10,000. Over time, that's powerful.

State differences

Your salary sacrifice limit is the same across Australia, but the base pay varies by state. States like WA (index 106.9) have higher typical pay, so more room for salary sacrifice. TAS (index 88.6) has lower pay, so less room. But the cap is the same. Use the how the index works to convert your offer to index points and compare.

Practical tips from job ads

When you see "salary sacrifice available" in an ad, ask: is it for super only or other benefits? For super, the limit is the cap. Some employers also allow salary sacrifice for cars or laptops, but those are fringe benefits, not super. For super, you can choose how much to sacrifice up to the cap. If you're unsure, check your total super contributions from all jobs. If you have multiple employers, the cap applies to all combined.

Example: comparing two offers

Offer A: Base $100,000, no salary sacrifice offered. Offer B: Base $95,000, salary sacrifice up to $15,000. With Offer B, you can sacrifice $15,000, reducing taxable income to $80,000. Tax on $80,000 is about $16,267 (including Medicare), compared to $22,267 on $100,000. Your take-home from Offer B is $95,000 - $15,000 - $16,267 = $63,733, plus $15,000 in super. Offer A take-home is $100,000 - $22,267 = $77,733, plus $12,000 SG. Over a year, Offer B gives you $3,000 more in super and $14,000 less in hand. Depending on your goals, salary sacrifice can be a good deal.

Final word

The amount you can salary sacrifice into super is up to the concessional cap minus employer contributions. For 2026-27, that cap is $30,000. Use the Salary Index to benchmark your base pay, and consider your tax bracket to decide how much to sacrifice. Always check with your employer and the ATO for the latest rules.