How much to salary sacrifice into super: A guide for Australian workers
Deciding how much to salary sacrifice into super is a personal calculation that depends on your income, your award or agreement, and the ATO’s contribution caps. The national full‑time average, drawn from the ABS Average Weekly Earnings for May 2026, sits at $2,083.70 a week, or about $108,352 a year. But your own figure may be higher or lower depending on where you live and what award covers you.
The national line and where you stand
The line on this site is the national full‑time adult ordinary‑time average. If you earn exactly that, you are on the line. If you earn more, you are above it; if less, below. The full‑time median, from the ABS Employee Earnings for August 2025, is about $90,532 a year, and the all‑employees median is about $74,100. 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.
Place a salary on the line to see your own distance from the average.
How state averages shift the picture
State full‑time averages vary noticeably. The Australian Capital Territory has the highest at about $119,090 a year, while Tasmania has the lowest at about $96,008. Western Australia is $115,825, New South Wales $109,658, Victoria $106,137, Queensland $106,064, South Australia $102,450, and the Northern Territory $103,173. These differences reflect industry mix, cost of living, and local labour markets. If you work in a state with a higher average, you may have more room to salary sacrifice, but your personal salary is what matters.
States and territories provides a full breakdown of each region’s average.
Award rates and the minimum floor
Awards set minimum wages for specific industries and occupations. From 1 July 2026, award minimums rose by 4.75%. If you are paid at the award rate, your salary is likely below the national full‑time average. For example, a hospitality worker on the minimum award might earn around $52,000 a year, leaving little room to sacrifice after living expenses. Higher‑paid professionals under awards or enterprise agreements may have more capacity. The key is that your award or agreement defines your base pay, and any salary sacrifice must not take your take‑home pay below the relevant minimum.
How salary sacrifice works
Salary sacrifice into super involves directing part of your before‑tax salary into your super fund. These contributions are taxed at 15% inside the fund, rather than at your marginal tax rate. If your marginal rate is 30% or higher (which applies from $45,000 in 2026–27), the tax saving can be significant. 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.
The ATO cap on concessional contributions
The amount you can salary sacrifice is limited by the ATO’s annual cap on concessional contributions. This cap includes both your employer’s compulsory super guarantee (currently 11.5% of ordinary time earnings) and any salary sacrifice you arrange. The precise cap for 2026–27 is not published in these notes; you should check the ATO website or your fund for the current figure. Exceeding the cap incurs additional tax. For most employees, the cap is a fixed dollar amount, so if you earn well above the national average, you may hit the cap quickly. If you earn below the average, you may not reach the cap at all.
Putting it together: How much to sacrifice
There is no single answer to “how much to salary sacrifice into super”. It depends on:
- Your salary relative to the national full‑time average and your state’s average.
- Your award or agreement, which sets your minimum pay.
- Your marginal tax rate and how much tax you want to save.
- The ATO cap and whether you have unused cap amounts from previous years (carry‑forward rules may apply).
- Your living expenses and other financial goals.
A common strategy is to sacrifice enough to bring your taxable income down to the top of the 30% bracket ($135,000) or to the top of the 15% bracket ($45,000) if you are close to it. But this is a general guide, not personal advice.
Why state and award differences matter
The angle of this article is that your state and award can move your salary off the national line. If you live in a high‑average state like the ACT or WA, you are more likely to be above the national average, giving you more headroom to sacrifice. If you are on an award with a low minimum, you may be below the average and have less room. The national line is a benchmark, but your actual capacity to salary sacrifice is shaped by your own circumstances.
How the figures are set explains the sources behind the averages and medians used on this site.
Final thoughts
Salary sacrifice into super can be a tax‑effective way to boost your retirement savings, but it is not right for everyone. The amount you choose should reflect your income, your award or agreement, and the ATO’s rules. Use the on‑site tool to see where your salary sits against the national full‑time average, and consult a qualified adviser for personal financial advice.