Salary sacrificing into super: how much can you add in 2026-27?
Salary sacrifice can cut your tax and grow your super at the same time — but there is a cap, a catch for high earners, and a rule about when you can touch the money. Here is the 2026-27 picture.
Salary sacrificing into super is one of the few genuinely tax-efficient moves available to everyday employees. You agree with your employer to redirect some of your pre-tax salary straight into super, where it is taxed at 15% instead of your marginal income-tax rate. For many people that is an immediate saving — but there is a cap, a catch for high earners, and a rule about when you can actually touch the money.
How the tax saving works
Money you salary sacrifice into super is taxed at a flat 15% contributions tax on the way in. If your marginal rate is 30%, 37% or 45%, the gap between that and 15% is your saving. Someone on the 37% bracket who sacrifices $10,000 pays $1,500 of contributions tax instead of $3,700 of income tax — a $2,200 difference — while the full amount still lands in super.
The concessional contributions cap
There is a limit on how much can go in at that concessional rate. For 2026-27 the concessional contributions cap is $32,500 a year. Crucially, this cap includes all your before-tax contributions — your employer's compulsory Super Guarantee, any salary sacrifice, and any personal contributions you claim a deduction for. So your sacrifice room is $32,500 minus whatever your employer already puts in.
Carrying forward unused cap
If you have not used your full cap in recent years, you may be able to carry forward the unused amounts from up to the previous five financial years — provided your total super balance was under $500,000 at the start of the year. This is handy for a one-off high-income year, selling an asset, or simply catching up.
Division 293: the high-earner catch
If your income plus your concessional contributions exceeds $250,000, an extra 15% tax — called Division 293 — applies to your contributions, so they are effectively taxed at 30% rather than 15%. That is still below the top marginal rate, so sacrificing can remain worthwhile, but the advantage is smaller.
The catch: you cannot touch it
Super is preserved — you generally cannot access it until you reach your preservation age (now 60) and retire, or turn 65. Salary sacrifice is powerful precisely because the money is locked away and grows in a low-tax environment, but that also means it is not a strategy for money you might need before retirement.
Who it suits
The higher your marginal tax rate, the bigger the benefit — so it tends to favour middle and higher earners. It is less compelling on the lowest bracket, where the gap to 15% is small, or if you would struggle without the take-home pay. As always it is about your whole picture: cash flow, other debts like a mortgage, and when you will need the money.
Model your salary sacrifice
See the effect on your take-home pay, tax and super — including the concessional cap and Division 293 — with 2026-27 rates.
This is general information, not personal advice. Whether sacrificing suits you depends on your circumstances. For a common trade-off, see our guide comparing salary sacrifice versus paying down your mortgage.