Question 1

What is Division 293 tax?

Accepted Answer

Division 293 is an additional 15% tax on super contributions for high-income earners. If your combined income and super contributions exceed $250,000, you may need to pay an extra 15% tax on the lesser of the excess or your concessional contributions.

Question 2

What counts as Division 293 income?

Accepted Answer

Division 293 income includes taxable income, reportable fringe benefits, net investment losses, and low tax contributed amounts (concessional super contributions). This combined total is compared against the $250,000 threshold.

Question 3

How is Division 293 tax paid?

Accepted Answer

The ATO issues a Division 293 tax assessment after you lodge your tax return. You can choose to pay from your bank account or have the amount released from your super fund. The payment deadline is shown on the assessment notice.

Question 4

Is salary sacrifice still worth it with Division 293?

Accepted Answer

Usually yes. Even with Division 293, super contributions are taxed at 30% (15% + 15%) which is still lower than the top marginal tax rate of 45% (plus Medicare levy). The net tax saving is reduced but still positive for most high-income earners.

Division 293 Tax Calculator

Frequently Asked Questions

Related Calculators