Who pays Division 293 tax?

Individuals with combined income and low-tax super contributions exceeding $250,000 in a financial year. Most commonly affects those earning above approximately $220,000 (since SG and salary sacrifice contributions add to income).

What is the Division 293 tax rate?

15% additional tax on concessional contributions, applied to the lesser of: concessional contributions or the amount by which income plus contributions exceeds $250,000. Combined with the 15% super fund tax = 30% total.

How is Division 293 tax paid?

ATO issues an assessment after the tax return is lodged. You can pay from personal funds or elect to have super fund release funds (debt account). Payment from super avoids liquidity issues but reduces super balance.

Does salary sacrifice still benefit Division 293 taxpayers?

Yes, but less so. Salary sacrifice saves income tax at marginal rate minus 30% (Division 293 rate). At 45% marginal rate: saving = 45% minus 30% = 15%. Still beneficial but the advantage is halved.

What is the proposed $3 million super tax?

From July 2025 (pending legislation), earnings in super accounts above $3 million will be taxed at 30% (rather than 15%). Unrealised gains are included in the earnings calculation, a controversial element of the proposal.

Australia Division 293 High Income Super Tax Calculator

Calculate Division 293 tax: additional 15% tax on concessional super contributions for high-income earners (income + concessional contributions exceeding $250,000 threshold). Total super tax: 30% (15% + 15% Division 293).

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Division 293 tax: additional 15% tax on concessional super contributions for high-income earners (income + concessional contributions exceeding $250,000 threshold). Total super tax: 30% (15% + 15% Division 293). Use the division 293 tax result to inform your calculation.

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Frequently Asked Questions

Who pays Division 293 tax?

What is the Division 293 tax rate?

How is Division 293 tax paid?

Does salary sacrifice still benefit Division 293 taxpayers?

What is the proposed $3 million super tax?