Question 1

How does salary sacrifice into super work?

Accepted Answer

Salary sacrifice redirects part of your pre-tax salary into super. Instead of being taxed at your marginal rate (up to 45%), these contributions are taxed at just 15% inside super. This creates an immediate tax saving while boosting your retirement balance.

Question 2

Does salary sacrifice reduce my HECS/HELP repayment?

Accepted Answer

No. Salary sacrifice into super is a reportable employer super contribution that gets added back to your HELP Repayment Income (HRI). Your HECS repayment is calculated on your original income, not the reduced taxable income.

Question 3

What is the concessional contributions cap?

Accepted Answer

For 2026–27, the cap is $32,500 per year. This includes employer SG plus any salary sacrifice and personal deductible contributions. If you have unused cap from prior years and your TSB is under $500,000, you may be able to carry forward unused amounts.

Question 4

Can salary sacrifice trigger Division 293?

Accepted Answer

Yes. If your income plus super contributions exceeds $250,000, you may pay an additional 15% tax on contributions. Even so, the effective 30% rate is still lower than the top marginal tax rate.

Question 5

What does 'effective cost per dollar' mean?

Accepted Answer

This measures how much take-home pay you give up for each dollar that arrives in your super fund. For example, $0.68 means every $1 of extra super only costs you 68 cents in take-home pay, due to the tax advantage.

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