Should I salary sacrifice into super?

Salary sacrifice can save significant tax if your marginal rate is above 15% (the super contributions tax rate). For someone earning $85,000 on the 30% marginal rate, every $1,000 sacrificed saves $170 in personal tax. The 2025-26 concessional cap is $30,000 total (including employer SG contributions). The higher your marginal tax rate, the bigger the benefit — but the money is locked until preservation age (60 for most Australians).

What is the super contribution cap for 2025-26?

For FY2025-26, the concessional (before-tax) contributions cap is $30,000 per year. This includes employer SG contributions, salary sacrifice, and any personal deductible contributions. The non-concessional (after-tax) cap is $120,000 per year. Exceeding the concessional cap means the excess is taxed at your marginal rate plus interest charges.

Industry fund vs retail fund — which is better?

According to APRA data, industry funds have consistently outperformed retail funds over the past 10 years. The median industry fund returned approximately 8.2% p.a. in their balanced option compared to around 7.0% for retail funds. Industry funds also tend to charge lower fees (around 0.60% investment fee vs 1.10% for retail). However, past performance is not a guarantee of future results, and individual fund performance varies significantly within each category.

What is the government super co-contribution?

If you earn less than $60,400 (2025-26) and make after-tax (non-concessional) contributions to your super, the government will match 50 cents for every dollar you contribute, up to a maximum of $500 per year. The full $500 is available if you earn $45,400 or less and contribute at least $1,000. The co-contribution reduces gradually for incomes between $45,400 and $60,400.

Super Comparison Calculator

Compare super strategies and fund types side by side. See how salary sacrifice, after-tax contributions, and your fund choice affect your retirement balance. Every rate is editable — FY2025-26 figures (last updated April 2026).

Last verified: 1 July 2025

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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