Super guarantee and salary sacrifice in 2026–27
Separate the employer’s 12% super guarantee from an employee’s salary-sacrifice choice and understand which number belongs in take-home pay.
Two contributions, two different jobs
| Amount | Who funds it | Effect on current cash |
|---|---|---|
| Super guarantee | Employer obligation, generally 12% of ordinary time earnings in 2026–27 | Normally additional to agreed cash salary |
| Salary sacrifice | Employee exchanges future salary for an employer super contribution | Reduces contractual cash salary |
The calculator shows an indicative SG amount separately from take-home. It uses 12% of the entered salary as a transparent approximation. Actual ordinary time earnings, eligibility, the maximum contribution base and whether a package is quoted inclusive of super can change the employer amount.
Payday Super starts on 1 July 2026
From 1 July 2026, the Payday Super framework requires super guarantee contributions to be paid with greater connection to payday. The contribution rate remains 12%; the reform changes timing and administration rather than turning super into cash pay.
How salary sacrifice affects the estimate
An effective arrangement is made for future earnings. The sacrificed amount reduces cash salary and taxable income. It is treated as an employer super contribution and should be additional to the employer’s compulsory SG obligation. It cannot be used to bring ordinary pay below applicable employment standards.
Salary sacrifice can reduce ordinary Income Tax and the Medicare levy in the simplified model. Reportable employer super is added back for HELP repayment income and can also affect other income tests.
Questions to ask before comparing offers
- Is the advertised salary plus super or inclusive of super?
- Which earnings are ordinary time earnings for SG?
- Does the employer add any of its payroll-tax or administration savings?
- Will sacrifice affect insurance, leave, bonuses or borrowing evidence?
- How much concessional-cap space is available?
Official sources
Compare cash and sacrificed super.
Enter an annual salary-sacrifice amount to see estimated take-home, tax, Medicare levy and employer SG separately.