Salary Sacrifice at $120k: How Much Tax Could You Save?
At $120k you're in the 30% marginal bracket, so every dollar salary sacrificed into super is taxed at 15% inside the fund instead of 30% in your hands — a saving of 15 cents per dollar. The 2025–26 concessional super cap is $30,000 (including the 11.5% employer contribution), so there's a ceiling on how much you can redirect before excess contributions are taxed at your marginal rate.
The comparison below models your $120k salary with and without a $15k salary sacrifice. You'll see the impact on take-home pay, total super contributions, and effective tax rate. For many employees in the 30% marginal bracket, the reduced cash flow is more than offset by accelerated retirement savings and meaningful tax savings — especially if you're not relying on every pre-tax dollar for day-to-day expenses.
Decision read
This is a material reduction in take-home pay.
The alternate setup changes yearly cash enough that you should justify it with a stronger non-cash benefit.
Baseline
No sacrifice
Alternate
With sacrifice
Result
$90,812.00No sacrifice
Annual gross$120,000.00
Income tax + levies$29,188.00
HELP repayment$0.00
Take-home pay$90,812.00
Monthly cash flow: $7,567.67
Effective rate: 24.3%
This scenario is using the cleaner baseline settings with no HELP debt, no bonus, and no salary sacrifice.
Result
$80,612.00With sacrifice
Annual gross$120,000.00
Income tax + levies$24,388.00
HELP repayment$0.00
Take-home pay$80,612.00
Monthly cash flow: $6,717.67
Effective rate: 32.8%
Salary sacrifice moves $15,000.00 out of current cash pay and into concessional super contributions.
Why the result moves
Compare the cash outcome, then inspect the structural reason
With sacrifice changes annual take-home by -$10,200.00 compared with No sacrifice.
With sacrifice changes tax and levy outflow by -$4,800.00.
Use this view to judge whether HELP, sacrifice, residency, or private health settings change cash pay enough to matter.
Frequently asked questions
How much tax do I save by salary sacrificing $15k at $120k?
At $120k your marginal rate is 30%. Salary sacrificing $15k shifts that amount from 30% personal tax to 15% super contributions tax, saving you roughly $2,250 per year in tax. The exact figure depends on your other deductions and offsets — use the calculator above for a precise comparison.
What is the concessional super cap for 2025–26?
The concessional (before-tax) super cap is $30,000 for 2025–26. This includes your employer's 11.5% super guarantee contribution, so if your employer contributes $13,800, you have about $16,200 of cap space remaining for salary sacrifice. Exceeding the cap means the excess is added to your assessable income and taxed at your marginal rate.
Does salary sacrifice reduce my HELP repayment income?
No. Reportable employer super contributions (including salary sacrifice) are added back to your income when the ATO calculates your HELP Repayment Income (HRI). So sacrificing into super won't reduce your HELP or HECS repayment. It will, however, still lower your income tax — the two obligations are calculated on different income definitions.
Want the full picture?
Read our in-depth guide to understand the methodology, edge cases, and planning strategies behind this comparison.
Read the guide →