Question 1

What is Division 293 tax?

Accepted Answer

Division 293 is an additional 15% tax on concessional (before-tax) super contributions for high-income earners. It applies when your income plus low-tax super contributions exceed $250,000 per year. The tax effectively increases the rate on super contributions from 15% to 30% for the portion that pushes you over the threshold, bringing it closer to the top marginal tax rate.

Question 2

Who pays Division 293 tax?

Accepted Answer

You may be liable for Division 293 tax if your Division 293 income plus your low-tax concessional contributions exceed $250,000. Division 293 income includes taxable income, reportable fringe benefits amounts, and net investment losses (added back). The ATO will send you an assessment if you are liable — you do not need to calculate or report it yourself on your tax return.

Question 3

How is Division 293 tax calculated?

Accepted Answer

The ATO calculates your Division 293 income (taxable income + reportable fringe benefits + net investment losses) and adds your low-tax concessional contributions. If the total exceeds $250,000, you pay 15% tax on the lesser of: the amount over the $250,000 threshold, or your taxable concessional contributions. For example, if your income is $240,000 and concessional contributions are $30,000, the total is $270,000 — you are $20,000 over the threshold, so Div 293 tax is 15% of $20,000 = $3,000.

Question 4

Can I pay Division 293 tax from my super fund?

Accepted Answer

Yes. When the ATO issues your Division 293 assessment, you can choose to pay it from your super fund by completing a release authority. Most people elect to pay from their super fund rather than from personal savings. Your super fund will release the amount directly to the ATO. If you do not make an election within the specified timeframe, the ATO will issue the release authority to your super fund automatically.

Division 293 Tax Calculator

Learn more

Related Tools