Super Strategy Summary — 2025-26¶
Dean & Kara¶
Incomes¶
| Amount | |
|---|---|
| Dean's salary | $85,000 |
| Kara's salary | $31,000 |
| Dean's employer SG (12%) | ~$10,200/yr (auto) |
2025-26 Tax Brackets (inc. 2% Medicare Levy)¶
| Income Range | Marginal Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
- Dean's marginal rate: 30%
- Kara's marginal rate: 16%
Concessional Contributions Cap¶
| Amount | |
|---|---|
| Annual concessional cap | $30,000 |
| Dean's employer SG already used | $10,200 |
| Dean's remaining headroom | $19,800 |
Salary sacrifice comes out of this headroom. Going over $30,000 total triggers extra tax.
Scenario: Dean Salary Sacrifices $10,000¶
Instead of receiving $10,000 as income (taxed at 30%), it goes into super (taxed at 15%).
| Without Sacrifice | With Sacrifice | |
|---|---|---|
| Tax on that $10k | $3,000 (30%) | $1,500 (15%) |
| Tax saving | $1,500 | |
| Take-home pay reduction | ~$7,000 (not the full $10k) | |
| Amount landing in super | $8,500 (after 15% contributions tax) |
The take-home drop is only ~$7,000 because you're also not paying the $3,000 in income tax you would have otherwise.
Contribution Splitting into Kara's Super¶
After the financial year ends, Dean can apply to split up to 85% of his concessional contributions across to Kara's super account.
- 85% of $10,000 sacrifice = $8,500 moves to Kara's account
- The tax saving already happened on Dean's end — the split just shifts the balance
- Counts against Dean's contribution limits, not Kara's
Why bother splitting? - Evens up retirement balances (important when one partner earns significantly less) - Kara's super grows faster - Can affect aged pension asset testing down the track - Kara retains her own full concessional cap for her own contributions
Note: Not all super funds support contribution splitting. Check with your fund first — some charge a fee.
Spouse Contribution Tax Offset (Separate Bonus)¶
If Dean contributes $3,000 from after-tax pay directly into Kara's super (via BPAY), he gets a tax offset at tax time.
- Kara earns $31,000 → under the $37,000 threshold → qualifies for full offset
- Offset rate: 18% on up to $3,000
- Max offset: $540/year
This is separate to salary sacrifice — it's just a bank transfer into her super. Essentially an 18% instant return on $3,000.
Full Year Summary¶
Combining a $10,000 salary sacrifice + $3,000 spouse contribution:
| Action | Benefit |
|---|---|
| $10k salary sacrifice (30% → 15%) | $1,500 tax saved |
| $3k spouse contribution offset | $540 back at tax time |
| Total annual benefit | $2,040 |
| Extra flowing into super (combined) | ~$11,500 |
If Dean Maxes Out His Headroom ($19,800 sacrifice)¶
| Amount | |
|---|---|
| Tax saving (30% → 15%) | ~$2,970 |
| + Spouse contribution offset | $540 |
| Total benefit | ~$3,510 |
Key Rules to Remember¶
- Salary sacrifice goes into your own super only — not directly into a spouse's
- Contribution splitting is the workaround — done after year end through your super fund
- Total concessional contributions (employer SG + sacrifice) must stay under $30,000/yr
- Kara must be under 60 (or 60-65 and not retired) to receive split contributions
- Kara's total super balance must be under $2 million (not an issue here)
- Unused concessional cap can be carried forward if your super balance is under $500,000
Based on 2025-26 ATO rates. Not financial advice — speak to an accountant for personalised guidance.