How Division 293 Works
If your income plus concessional super contributions exceeds $250,000, you pay an additional 15% tax on super contributions. This brings the total tax on those contributions from 15% to 30%.
The Calculation
The extra 15% applies to the lesser of:
- Your taxable concessional contributions, or
- The amount by which your income + super exceeds $250,000
Example
You earn $260,000 salary. Your employer pays $31,200 in super (12%). Your income for Division 293 purposes is $291,200 — that's $41,200 over the threshold. The extra 15% tax applies to the lesser of $31,200 (contributions) or $41,200 (excess) — so you pay an extra $4,680 in Division 293 tax.
How to Pay
The ATO calculates Division 293 automatically after you lodge your return and sends you an assessment. You can pay from your bank account or elect to have it released from your super fund.
Frequently Asked Questions
Can I avoid Division 293?
Only by earning under $250,000 (including super). You can't opt out of employer super contributions, so if your salary alone is near the threshold, Division 293 may apply.
Can I pay Division 293 from my super?
Yes. You can elect to have the tax released from your super fund rather than paying from your bank account. Lodge an election with the ATO.