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Salary sacrifice calculator

By salary sacrificing, you could reduce your taxable income, and power up your retirement. You can also pay direct into your super and enjoy the same low tax rate by claiming a deduction in your annual tax return.

In fact it is possible to both salary sacrifice and direct pay (up to annual caps) and get the maximum benefit from the minimum tax rate.

Try our tax calculator now, to see how you could turn a little into a lot. 

Ready to start to salary sacrifice?

Just send your employer an email.

Suggested email text:

Hi,

Re: Salary Sacrifice

Please deduct $XXX per month from my salary and send it to the same super fund as my super guarantee contributions.

Please also confirm this does not affect the employer super guarantee dollars that you are currently sending to the fund.

Thank you.

Calculate your tax
Step 1. My Details
Step 2. My Results

Add an entry for each separate job

 
  • Other factors that may affect your tax

Total annual breakdown

Tax withheld

Highchart to go here.

Net pay

Gross earnings $52,000
Tax applicable $9,516
Tax withheld $9,516
Net pay $42,484

Assumptions apply

Here's an idea

Income tax & Medicare savings $181
Less contributions tax $78

Current

$9,516
$9,516

New

$9,516
$9,516
$9,516
Salary Sacrifice
Tax paid
Take home pay

At retirement

this could add an extra

$45,000

Looking good?

Talk to your employer or super fund about setting up salary sacrifice.

Calculate your employee's tax
Step 1. My Details
Step 2. My Results
 
  • Other factors that may affect your tax

Total annual breakdown

Tax withheld

Highchart to go here.

Net pay

Gross earnings $52,000
Tax applicable $9,516
Tax withheld $9,516
Net pay $42,484

Assumptions apply

Automation Testing

Purpose and assumptions

This calculator generates information about how your taxable income and retirement outcome are influenced by salary sacrifice. This is based on certain assumptions.

Limitations

Your taxable income and retirement outcome will be affected by many things including the amount of contributions you make, fees, investment returns and regulatory changes. Some factors that may affect your retirement outcomes may not have been taken into account.

Outcome is based on your contributions being made annually, at the mid-year point, on your fees being deducted annually and your investment returns being credited to your account annually.

This is a Model, not a Prediction

The tool is not intended to be relied upon for the purposes of making a financial decision. Consider a fund’s product disclosure statement (PDS) and your objectives, financial situation and needs, which are not accounted for in this information, before making an investment decision.

You are responsible for your own investment decisions and should obtain specific, individual advice from a financial services licensee before making any financial decisions.

Assumptions

The tax withheld calculator conforms to ATO rates according to "Statement of formulas for calculating amounts to be withheld".

This version of the calculator applies to payments made in the 2018-19 income year. It calculates HELP repayments according to "Higher Education Loan Program weekly tax table".

It calculates FS repayments according to "Student Financial Supplement Scheme weekly tax table". It takes into account the income tax rates and tax free threshold. It takes into account the Medicare levy but not the Medicare surcharge.

The "salary sacrifice saving" is based on a reduction in your take home pay according to PAYG tables, not your end of your tax assessment.

The "this could mean at retirement" outcome uses an actuary projection and the following assumptions:

  • Assumes Salary increase of 3.5% per annum.
  • Assumes Investment Returns of 5.7% per annum (gross of taxes and fees at 7.5%) including taxes of 15% deducted.
  • Investment returns are assumed to be credited to members' accounts annually.
  • Superannuation Guarantee Contribution starts from 9.5% at July 1st 2016 and then increases to 12% as per current legislation
  • The LISTO applies from 1 July 2017. We assume you qualify for this if your income is below the relevant government threshold and you meet the age and working requirements.
  • We assume a 15% tax on contributions to your super.
  • We assume that contributions are made and fees are deducted annually, at the mid-year point.
  • A tax rebate of 15% is assumed on fees deducted from members' accumulation accounts
  • 2.5% inflation per annum is assumed
  • Average fees assumed
    • 0% on contributions
    • $50/year member fee
    • 1.1% asset fee
  • No deductions are made for insurance premiums

Disclaimer

Purpose and assumptions

This calculator generates information about how your taxable income and retirement outcome are influenced by salary sacrifice. This is based on certain assumptions.

Limitations

Your taxable income and retirement outcome will be affected by many things including the amount of contributions you make, fees, investment returns and regulatory changes. Some factors that may affect your retirement outcomes may not have been taken into account.

Outcome is based on your contributions being made annually, at the mid-year point, on your fees being deducted annually and your investment returns being credited to your account annually.

This is a Model, not a Prediction

The tool is not intended to be relied upon for the purposes of making a financial decision. Consider a fund’s product disclosure statement (PDS) and your objectives, financial situation and needs, which are not accounted for in this information, before making an investment decision.

You are responsible for your own investment decisions and should obtain specific, individual advice from a financial services licensee before making any financial decisions.

I'M READY TO CHOOSE A FUND