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Calculator assumptions
- The calculator only considers your annual, monthly, weekly or fortnightly taxable salary (superable) as the only source of income. Any income you may have received from other sources is not factored into the results presented.
- The SG contribution amount of 12% is calculated on the gross income amount entered only. No allowance has been made for the Maximum superannuation contribution base ($62,500 per quarter for the 25/26 financial year).
- The contributions are made within the same financial year.
- The 'Contribution level' refers to the sum of the salary sacrifice contributions plus the after-tax contributions less the contribution tax (15%) on the salary sacrifice contributions.
- PAYG tax is calculated using the personal marginal income tax rates plus Medicare levy effective from 1 July 2025 with a tax-free threshold and no leave loading. The PAYG tax calculation takes into account the Low Income Tax Offset (LITO) calculations effective 1 July 2025. The Medicare levy rates used do not take into account low income for families. The Medicare levy surcharge has not been included in this calculator.
- No allowance has been made for taxes (including taxation that applies to the payment of superannuation and retirement income benefits) with the exception of personal income tax and contributions tax. If any of these other taxes apply, the calculator's results will be incorrect.
- Co-contribution has been included in the calculation. This has been based on the Gross salary and After-tax contributions that have been entered into the calculator. The Co-contribution rate is current from 1 July 2025.
- It is assumed that the Government co-contribution for the after tax contributions made during the relevant year is paid at the end of that year.
- Concessional contributions (employer contributions including SG and salary sacrifice contributions) are capped at a maximum of $30,000 per year and are subject to contributions tax of 15%.
- Since comparatives are based on the same contribution the after-tax contribution cap is limited to the concessional contributions cap.
- You are greater than 18 years of age.
- No allowance has been made for spouse contributions.
- No allowance has been made in this calculation for inflation or other changes in the cost of living.
- If your actual situation differs from the assumptions made, then the calculations may differ from your actual amounts.
- Overall benefit to Super at retirement is the sum of net contributions paid to super from this financial year to age 67 and takes the highest net contribution value of the after-tax contribution and the salary sacrifice contribution.
- Yearly benefit in tax is the sum of PAYG tax and contribution tax for the corresponding value in "Overall benefit to Super at retirement".
- The projection calculations are a general illustration of an accumulation account at nominated retirement age which is defaulted to age 67.
- The default price inflation rate (CPI) used is 2.5%. This rate has been based on historical and expected future rates and is the mid-point of the RBA target range for inflation. The actual rate of price inflation may differ significantly from this assumption.
- The default inflation rate is based on the salary inflation rate specified by Australian Securities and Investment Commission (ASIC Corporations Instrument [CI 2022/603]). The actual rate of inflation may differ significantly from this assumption. You may specify a rate different from the default rate to see the effect that this may have.
- A default of 0.484% of the account balance is provided for "Fees deducted". The actual fees deducted from your investment may differ significantly from these assumptions. The default percentage is based on LifeStage Tracker investment options (0.394% plus 0.12% indirect costs (indirect costs range from 0.10% to O.12%. Check the Product Guide for the relevant ICR cost for each Lifestage Tracker Cohort).
- The default net investment rate is 6% pa (net of tax and investment fees) for the accumulation calculation. This is based on similar assumptions used in the Australian Government Treasury's dynamic microsimulation Model of Australian Retirement Incomes and Assets (MARIA) report. You may specify a rate of investment return different from the default rate. The actual rate of return for your investments may differ significantly from this assumption.
The Salary Sacrifice Calculator is provided by Virgin Money Financial Services Pty Ltd (ABN 51 113 285 395) (“VMFS”) under licence by DaNiro Solutions Pty Ltd as trustee for DaNiro Solutions Unit Trust (ABN 96 321 350 816) (“Daniro”). This calculator is based on Daniro’s current understanding of Australian tax and superannuation laws as at July 2016. The assumptions contained in, and the results obtained from, this calculator are believed to be accurate and are made in good faith. However, to the extent permitted by law, VMFS and Daniro disclaim all liability to any person in respect of anything done or omitted to be done, and the consequences of such action or omission, by any such person in reliance upon any part of the information obtained by using this calculator.
Please consider your personal position, objectives, and requirements before taking any action. This calculator is intended to provide illustrative examples based on stated assumptions and your inputs. This calculator is not intended to be your sole source of information when making a financial decision. You may wish to consider getting advice from a licensed finance professional including a decision in relation to a particular product, fund or strategy.
Actual outcomes will depend on a range of factors outside the control of VMFS. VMFS and its employees expressly disclaims all liability and responsibility to any person who relies, or partially relies, upon anything done or omitted to be done by this service.
Further tax may be payable if you have not provided your TFN to the fund or your contributions for the year exceed the contribution caps. Further tax may also be payable upon payment of a superannuation benefit.
No substitute for professional advice
This calculator is not intended to be used as a substitute for professional financial advice on Salary Sacrifice options and does not constitute a recommendation or statement of opinion about superannuation and should not be relied upon for the purpose of making a decision in relation to a superannuation product. It does not replace personal financial advice. For this reason, you should not make any decision on the information provided without first seeking advice from a financial services licensee.
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More information about salary sacrifice.
What is salary sacrifice?
Salary sacrificing is when you contribute an additional portion of your income into your superannuation fund before tax. This contribution is made in addition to the compulsory super contributions made by your employer. Doing this means your taxable income is reduced.
Read more about salary sacrifice options in Building Your Super.
How does salary sacrifice work?
How much can I salary sacrifice?
There’s a limit of $30,00 a year for all before-tax contributions. This includes salary sacrifice, Superannuation Guarantee and other employer contributions. Amounts that exceed these limits can be accepted in some circumstances, especially if they have less than $500,000 in super in total, and haven’t used up their contribution caps in recent years.
Amounts that exceed these limits will not benefit from the reduced tax rate and will be taxed normally at your marginal tax rate.
Does salary sacrifice reduce taxable income?
What's the difference between a concessional and non-concessional contribution?
Generally, a concessional contribution is a contribution made by or for you to your super before tax. They include contributions such as:
- your employers compulsory contributions (Super Guarantee)
- additional employer contributions, and
- any salary sacrificed contributions that you arrange for your employer to redirect from your before-tax salary.
A non-concessional contribution is a special term associated with after-tax super contributions. After-tax contributions are super contributions for which an individual or employer hasn't claimed a tax deduction. Concessional is a term used to describe favourable tax treatment.
For more information go to Making Contributions.
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- Salary sacrifice and additional voluntary contributions
- Rollovers and consolidation
- Investment choice selections
- Nominating an appropriate regular super contribution versus paying down debt
- Co-contributions
- Spouse contribution splitting
- Selection of insured benefit levels
Our advisers will prepare you a written Statement of Advice and send it to you as part of our service. We can even help you put that advice into action on the spot.
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