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Salary Sacrifice Calculator
Most Australians invest from their pay packet and lose up to 47% in tax first. Salary-sacrificing into super costs just 15%. See your gap in seconds.
Every dollar you invest from your pay packet is already taxed at your marginal rate (up to 47% including Medicare levy). Every dollar you salary-sacrifice into super is taxed at 15%. This calculator shows you the dollar difference over your investment horizon.
Educational tool only. Not financial or tax advice.
Your marginal tax rate: 30%
Historical average for a diversified portfolio. Past returns don't guarantee future results.
Your estimated result
$10,000/yr · 10 years · 7% return · 30% marginal tax
Estimated difference after 10 years
$23,488
Educational example only. Actual result depends on ATO rules, super caps, and your situation.
This is a general educational example only. It does not account for the super contributions cap (currently $30,000 concessional per year), investment fees, insurance inside super, reduced access to super before preservation age, or your individual tax position. Ripper Wealth does not hold an AFSL and does not provide personal financial advice. Consider consulting a licensed financial adviser before making investment decisions.
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How the Tax Gap Works
The same dollar invested two different ways produces two very different outcomes over time. The gap comes entirely from the tax rate applied at the point of contribution.
PAYG investing (pay packet first)
- Your employer pays your gross salary
- ATO withholds income tax at your marginal rate (up to 47%)
- You invest whatever is left after tax
- Any earnings inside the investment are also taxed at your marginal rate
Example: earning $100k, marginal rate 34.5% (including Medicare levy). $1,000 gross becomes $655 to invest.
Salary sacrifice (super first)
- You agree to redirect part of your salary to super before it is taxed
- Super fund pays 15% contributions tax on entry
- The full amount goes to work straight away
- Investment earnings inside super are taxed at 15% (or 0% in pension phase)
Same example: $1,000 gross becomes $850 working for you in super. That is $195 more from the same gross dollar.
Concessional contribution cap
Salary sacrifice contributions count towards your concessional (before-tax) contributions cap, which is $30,000 per financial year (2024-25 onwards, including your employer's Super Guarantee). Contributions above this cap are taxed at your marginal rate. Always check your cap before increasing salary sacrifice amounts.
This calculator is for educational purposes only. Results are illustrative and do not constitute financial, tax, or legal advice. Super rules including concessional caps change over time. Always consult a registered financial adviser or tax agent for advice specific to your situation.
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