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Compare the cost to you with the amount in super
A $5,000 salary sacrifice is not always a $5,000 reduction in take-home pay. Taxable income falls, so some income tax and Medicare may be saved. The contribution is generally taxed at 15% in your fund before the balance is invested.
The comparison shows the fall in annual cash and the contribution after standard fund tax. Super is preserved for retirement, so the extra balance cannot usually replace money you need for today’s bills.
Moving $5,000 from a $100,000 salary into super
The extra contribution leaves $4,250 in super after ordinary 15% contributions tax. Its annual cash cost is $3,400 without HELP, or $3,400 with HELP. Sacrificed super is added back for HELP, so reducing taxable income does not reduce the study repayment in this example.
The comparison excludes fund fees, investment returns, Division 293 and any unused contribution caps. It does not treat retirement savings as money available for this month’s bills.
| Part of the comparison | Annual amount |
|---|---|
| Cash cost, no HELP | $3,400 |
| Cash cost, with HELP | $3,400 |
| Extra super after 15% fund tax | $4,250 |
Employer contributions use the cap too
The concessional cap includes employer super, salary sacrifice and deductible personal contributions. In 2026-27 the ordinary cap is $32,500. Check all your funds and jobs rather than looking only at the amount you plan to sacrifice.
Some people can carry forward unused cap amounts when eligible. Higher-income earners may face Division 293 tax. This tool uses the ordinary cap and standard 15% contribution tax; it does not calculate carry-forward eligibility or Division 293.
HELP is the catch worth knowing
Salary sacrifice into super generally reduces taxable income but is added back for HELP repayment income. That means you can pay less income tax without reducing your compulsory HELP repayment.
There is a family exception: lower taxable income can qualify you for the low-income family Medicare reduction, which can remove the compulsory HELP repayment even while repayment income stays the same. Check your partner's taxable income and eligible children in the household settings.
It is also added back for the Medicare levy surcharge income test. Do not use salary sacrifice alone to assume you have moved below a surcharge threshold. The calculator keeps those income tests separate.
Arrange it before the salary is earned
A salary sacrifice arrangement generally needs to be agreed with your employer before the work is performed. Check contribution timing, fees and the employer’s payroll process.
Budget for the cash reduction before committing. A smaller regular contribution may be easier to manage than choosing a large annual amount without checking your monthly bills.
Common questions
Can I salary sacrifice the full $32,500?
Not usually on top of employer super. Employer contributions and other concessional contributions also count towards that cap. Your own remaining room depends on what has already been contributed.
Does salary sacrifice remove HELP or the surcharge?
Usually it does not, because super sacrifice is added back for the relevant income tests. A low-income family Medicare reduction is an exception for HELP: it can remove the compulsory repayment even while repayment income stays the same. The surcharge uses its own income and cover tests.
Sources you can check
Sources checked for this page on 3 October 2026. Statistics keep their own measurement dates.
- ATO: salary sacrificing super
- ATO: maximum contributions base and contribution caps
- ATO: study and training loan repayment thresholds
- Higher Education Support Act: family HELP repayment exception
- ATO: Medicare levy reduction for low-income earners
- ATO: Medicare levy surcharge thresholds and rates
- ATO: Australian resident income tax rates
- Tax Reform Act 2026: standard work deduction
- Official 2026 indexed HELP repayment amounts