Salary sacrifice – a smart way to boost your super
16 March 2026
Making extra contributions to your super can feel difficult when the cost of living is rising.
If you’ve ever wondered how to boost your super and potentially reduce your taxable income, salary sacrifice may be worth a look.
For many people, salary sacrificing is one of the simplest and most tax-effective ways to grow their super, with less impact on their pay.
What is salary sacrifice?
Salary sacrifice is an arrangement between you and your employer where you agree to forego part of your before-tax salary and have it paid directly into your super account.
Instead of that money being taxed at your marginal tax rate and paid to you as income, it goes into super as a concessional (before-tax) contribution and is generally taxed at 15%. For many people, this may be lower than the tax they would normally pay on their income.
As a result, salary sacrifice could reduce your taxable income, while increasing the amount going into your super.
Why salary sacrifice to super?
The main benefit of salary sacrifice is tax efficiency.
Most people pay more than 15% tax on at least part of their income. By contributing to super from before-tax pay, you are usually paying less tax on that portion of your income than if you received it as salary.
Salary sacrifice can offer several potential benefits:
- Pay less tax on part of your income.
- Reduce your taxable income.
- Grow your super faster through long-term investment and compounding returns.
- Make regular contributions without needing to actively transfer money each pay cycle.
For people on middle to higher incomes, these benefits can potentially add up significantly over time.
Who is salary sacrifice best suited to?
Salary sacrifice is generally most effective for people whose marginal tax rate is higher than the 15% contributions tax paid inside super.
Even if you’re not sure it applies to you, it can still be useful to understand how it works.
If your total annual income exceeds $250,000, Division 293 tax of an additional 15% applies to before-tax super contributions. This means you would pay 30% tax on salary sacrifice contributions, instead of the standard 15%. You also need to consider the concessional contributions cap (see below).
Further information is available in our Superannuation tax info sheet.
How salary sacrifice grows in super
Super is designed as a long-term investment. The earlier and more consistently you contribute, the more time your money has to benefit from compound returns.
Even relatively small additional contributions made regularly can make a meaningful difference over time. Salary sacrifice can help you lock in that consistency because contributions are made automatically through payroll.
Use our Salary Sacrifice Calculator to see how you could boost your super.
How much can you salary sacrifice?
There is a limit on how much you can contribute to super through concessional (before-tax) contributions each year.
For the 2025/26 financial year, the concessional contributions cap is $30,000.
This cap includes:
- Employer Superannuation Guarantee contributions.
- Salary sacrifice contributions.
- Personal contributions for which you claim a tax deduction.
If you exceed the cap, you may need to pay additional tax. Read more in our Contribution caps information sheet.
It’s a good idea to keep an eye on your contributions across the financial year – especially if you change jobs or adjust your salary sacrifice amount.
The quickest way to check your contributions is by logging into your account through Member Online or the Brighter Super mobile app.
Salary sacrifice and other considerations
While salary sacrifice can be highly effective, it is not suitable for everyone. There are a few important things to keep in mind.
- Assessable income
Although salary sacrifice reduces your taxable income, it may not reduce your assessable income. Assessable income is used to determine eligibility for some government benefits and tax offsets.
- Employment benefits
Some employment benefits are calculated based on your salary. Before setting up salary sacrifice, check with your employer whether it could affect things like overtime, leave loading or insurance benefits.
- Fringe benefits tax
Salary sacrifice contributions to super are not subject to fringe benefits tax. However, they are reported as reportable employer superannuation contributions and may still affect eligibility for some benefits.
- Super co-contribution
Salary sacrifice contributions do not qualify for the government super co-contribution. If your income is below $62,488 in 2025/26 and you meet the eligibility criteria, making after-tax contributions may be beneficial either instead of or alongside salary sacrifice.
Read more in our Super support for low and middle income earners information sheet.
Don’t leave yourself short of money. There’s no point putting extra into super if you’re not left with enough income to meet your commitments.
Generally, you can only access any contributions you have made to your super once you have satisfied a condition of release – for more on this, read our accessing superannuation early info sheet.
How to set up salary sacrifice
If you are interested in salary sacrificing into your super, the first step is to speak with your employer or payroll team. They can let you know whether salary sacrifice is available and how to set it up.
Use the salary sacrifice calculator
You can use our Salary Sacrifice Calculator to help understand the potential effects of salary sacrifice on your take-home pay and on the tax you pay. It can show you what effects salary sacrifice can have on your super balance and how much extra this could give you in retirement.
The calculator provides general information only and does not take your personal circumstances into account. It can be a useful guide, but it should not be relied on to make financial decisions.
Use our Salary Sacrifice Calculator
We’re here to help
Salary sacrifice is just one way to grow your super, and the right approach depends on your individual circumstances.
Further information is available in our Salary sacrifice information sheet.
Brighter Super’s team of superannuation specialists and financial advisers are here to help you. If you have any questions about contribution caps or how salary sacrifice works, please contact us on 1800 444 396.
The information contained is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling 1800 444 396, or by emailing info@brightersuper.com.au.
Brighter Super Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for Brighter Super (ABN 23 053 121 564) (RSE R1000160) (the Fund). Brighter Super may refer to the Trustee or the Fund as the context may be. Brighter Super products are issued by the Trustee on behalf of the Fund.
You should obtain and consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decision to acquire any products. A TMD is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at brightersuper.com.au/pds-and-guides.
This article provides general advice only and does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial adviser if you require advice which does take into account your personal financial circumstances.
