Australia Division 293 tax on super contributions
This explanation covers the income and contribution threshold, additional tax rate and assessment process for Australia’s Division 293 tax.
On this page
- Combined threshold
- More than A$250,000ATO Division 293
- Additional tax
- 15% of the lesser of the excess or taxable super contributionsATO Division 293
The combined threshold
Division 293 is an additional tax on super contributions for individuals whose combined income and concessional contributions for Division 293 purposes exceed A$250,000. ATO Division 293 (opens in a new tab).
The ATO uses tax-return information to establish Division 293 income and information reported by super funds to establish contributions. ATO Division 293 (opens in a new tab).
How the additional rate applies
The additional tax is 15% of the excess over the threshold or the taxable super contributions, whichever is less. ATO Division 293 (opens in a new tab).
Taxable super contributions are the lesser of Division 293 super contributions and the amount above the threshold. They are not necessarily the same as total Division 293 super contributions. ATO Division 293 (opens in a new tab).
Income is broader than salary
The income calculation includes taxable income, reportable fringe benefits, net financial investment losses, net rental property losses and certain family trust amounts. Relevant super lump sums and assessable First Home Super Saver released amounts are subtracted. ATO Division 293 (opens in a new tab).
A termination payment, back pay or a capital gain can raise income above the threshold for a particular year even where the threshold is not normally exceeded. ATO Division 293 (opens in a new tab).
Contributions and assessment
Concessional contributions count for Division 293 purposes excluding excess concessional contributions. Contributions within a higher cap arising from carried-forward amounts still count. ATO Division 293 (opens in a new tab).
The ATO issues assessments after it has the necessary income and contribution information. Later reporting by another fund can lead to an amended assessment. ATO Division 293 (opens in a new tab).
Payment and scope
A liability may be paid using personal money or an election to release money from super. The election does not change the liability’s payment due date. Defined benefit members can have deferred amounts under separate arrangements. ATO Division 293 (opens in a new tab).
This general explanation does not determine Division 293 income, taxable contributions, eligibility for special treatment or a personal liability. No matching calculator for Division 293 tax or numerical worked example is provided.