How Much Super Can I Salary Sacrifice?
Salary sacrifice is an agreement between you and your employer to put some of your before‑tax pay into your superannuation fund. The question “how much super can I salary sacrifice?” is really about two things: the legal cap set by the ATO and how your own salary compares with the national full‑time average.
The National Full‑Time Average as a Benchmark
The ABS Average Weekly Earnings, May 2026, puts the national full‑time adult ordinary‑time average at $2,083.70 a week, or about $108,352 a year. This is the line our site uses. If you salary sacrifice, your taxable salary drops, so your reported figure may sit below this line even if your total employment cost (salary plus super) is above it. For example, a worker on $120,000 who sacrifices $15,000 into super would show a salary of $105,000 – just under the national average. The Place a salary on the line tool lets you see exactly where your before‑tax salary lands.
The ATO Cap and What It Means
The ATO sets a concessional contributions cap each financial year. This cap covers all before‑tax contributions: your employer’s compulsory super guarantee, any salary sacrifice, and any personal contributions you claim as a tax deduction. Our data does not include the current cap figure, so you should check the ATO for the exact number. Exceeding the cap attracts extra tax, so it pays to know the limit before you start sacrificing.
State and Award Differences
Your state and your award can move your effective pay off the national line. The full‑time averages vary across Australia:
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
If you work in a high‑average state like the ACT or Western Australia, your base salary may already be above the national line, giving you more room to sacrifice without dropping below it. Conversely, in Tasmania or South Australia, the lower average means sacrificing a large amount could push your taxable salary well below the national figure.
Award rates also matter. The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on 38 hours. Award minimums rose 4.75% that year. Salary sacrifice cannot reduce your pay below the award minimum for your classification. So if you are on an award, the maximum you can sacrifice is limited by the gap between your base rate and the award floor. For example, a retail worker on a level 3 award might earn $60,000; sacrificing more than $7,745 would bring their taxable salary below the award minimum, which is not allowed.
Medians and the Full‑Time Picture
The full‑time median from the ABS Employee Earnings, August 2025, is about $90,532 a year. The all‑employees median is about $74,100. These medians show that half of full‑time workers earn less than $90,532. If you salary sacrifice, your taxable salary might fall below the median even if your total package is above it. That is a common scenario for high‑income earners who maximise their concessional cap.
Men’s full‑time ordinary‑time average is about $113,412; women’s is about $100,594. The gap means women on average have less headroom to sacrifice before their taxable salary drops below the national line. However, salary sacrifice can be a useful strategy for anyone looking to boost retirement savings while reducing current tax.
Tax Implications
Salary sacrifice reduces your taxable income, which can lower the tax you pay. The 2026–27 resident tax rates are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The Medicare levy of 2% applies before any reductions. By sacrificing into super, your contributions are taxed at 15% within the fund (up to the cap), which is often lower than your marginal rate. This is why salary sacrifice is popular with workers in the 30% bracket and above.
Putting It All Together
To answer “how much super can I salary sacrifice?”, you need to know:
- Your current before‑tax salary
- Your award or enterprise agreement minimum
- The ATO’s concessional contributions cap (check the ATO directly)
- Your state’s full‑time average for context
Our States and territories page shows how your location compares. The Job medians and Industry medians pages can help you see where your occupation or industry sits relative to the national line. And the Guides section has more detail on salary sacrifice strategies.
Remember, the national full‑time average is a useful benchmark, but your personal situation – award, state, and cap – will determine how much you can actually sacrifice. Use our Place a salary on the line tool to see where your before‑tax salary lands, then factor in your super contributions to understand your total position.