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For many Australians, growing superannuation can feel difficult alongside everyday expenses, mortgage repayments and financial commitments. While most people understand the importance of preparing for retirement, knowing which strategies may be appropriate and whether they are affordable can often feel overwhelming.
One strategy some people consider is salary sacrificing.
Salary sacrificing allows part of your pre-tax salary to be contributed directly into your superannuation fund through your employer. Because these contributions are generally made before income tax is applied, salary sacrificing may help reduce your taxable income while also helping build your retirement savings over time.
For some people, this can be a tax-effective way to grow superannuation. However, the benefits can vary depending on income, cash flow, contribution caps and personal circumstances.
To better understand how salary sacrificing may work in a real-world scenario, let’s look at Kelly’s journey through moneyGPS.
Client Profile
Name: Kelly
Age: 42 years
Occupation: Project Manager
Annual Income: $120,000
Goals: Improve long-term financial position and build more savings for retirement.
Meet Kelly
Kelly is 42 years old and earns $120,000 per year. Like many Australians, she wanted to strengthen her long-term financial position and build additional retirement savings, while still managing everyday expenses and financial commitments.
Although she had heard about salary sacrificing before, she wasn’t sure whether it was the right strategy for her. She also wanted to understand how much she could realistically contribute and what impact it may have on her take-home pay.
To better understand her options, Kelly completed the complimentary Money Check-Up through moneyGPS.
The Check-Up identified that Kelly may benefit from exploring a salary sacrifice strategy and highlighted that she still had available capacity within the concessional contribution caps.
Wanting more personalised guidance, Kelly then purchased the Salary Sacrifice Statement of Advice (SoA) through moneyGPS to better understand how the strategy could work for her individual situation.
Understanding the Strategy
Through the personalised advice and modelling, Kelly explored salary sacrificing an additional $850 per month into her superannuation.
Although Kelly was contributing an additional $850 per month into super, the reduction in her take-home pay was lower than the full contribution amount due to the potential tax benefits associated with salary sacrificing.
Estimated Impact of Salary Sacrificing
The personalised modelling demonstrated how salary sacrificing may impact Kelly’s taxable income, take-home pay and super contributions over time.
Current Situation
After Salary Sacrifice $120,000
Annual Salary $120,000
Current Situation
After Salary Sacrifice
Annual Salary
$120,000
$120,000
Additional Super Contribution
$0
$12,000
Taxable Income
$120,000
$108,000
Estimated Annual Tax Paid
$29,188
$25,348
Estimated Take-Home Pay
$90,812
$82,652
While Kelly contributed an additional $12,00 per year into superannuation, the reduction in her annual take-home pay was estimated to be lower than the full contribution amount due to the potential tax savings generated through salary sacrificing.
The modelling also demonstrated how additional super contributions, combined with long-term compounding, may help strengthen Kelly’s retirement savings over time.
Importantly, the advice did not simply focus on tax savings. It also considered:
Kelly’s existing financial commitments.
Her monthly cash flow and living expenses.
Contribution caps and superannuation rules.
The trade-off between current lifestyle and future retirement goals.
The Statement of Advice also provided practical implementation steps to help Kelly understand how the strategy could be put into place.
A More Accessible Way to Explore Financial Strategies
Traditionally, personalised Statements of Advice prepared by licensed financial advisers can often cost several thousand dollars depending on complexity.
Through moneyGPS, eligible users can access a personalised digital Salary Sacrifice Statement of Advice from only $198, designed to help make financial guidance more accessible and easier to understand for everyday Australians.
Before accessing the advice, users are required to complete the complimentary Money Check-Up and identity verification process through moneyGPS.
Is Salary Sacrificing Right for You?
Is salary sacrificing right for you?
Salary sacrificing may not be suitable for everyone, and the benefits can vary depending on your income and personal circumstances. Understanding the potential impact before making changes is important. If you would like to explore whether salary sacrificing may fit into your broader financial position, moneyGPS can help you better understand your options and model potential outcomes over time.
Explore Your Financial Position with moneyGPS
Understanding strategies like salary sacrificing is only one part of the bigger picture. Through moneyGPS, you can complete a complimentary Money Check-Up, access educational tools and learning modules, and explore personalised financial guidance designed to help you make more informed financial decisions.
Whether you’re looking to grow your super, reduce financial stress, or better understand your options for the future, moneyGPS can help you take the next step with greater confidence.
Important Information
The Money Check-Up (MCU) provides general information designed to help you better understand your financial position and identify areas where you may benefit from further guidance. It does not provide personal financial product advice.
GPS Coaches do not provide personal financial advice. Their role is to help users understand their Money Check-Up results and available solutions so they can consider appropriate next steps.
The case study featured in this article is for illustrative purposes only and does not represent guaranteed outcomes.
Any general information provided does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for your circumstances and seek personal financial advice where appropriate.
The information provided the writer was current at the time the article was produced - 06/2026.