Division 293 threshold
$250,000
Additional tax rate
15%
Effective contributions tax
30%
Concessional cap
$30,000
What is Division 293 tax?
Division 293 is an additional 15% tax on concessional (before-tax) super contributions for individuals whose combined income and super contributions exceed $250,000. It brings the effective tax on those contributions from 15% to 30%.
The purpose of Division 293 is to reduce the tax concession that higher earners receive from super. Without it, someone in the 45% tax bracket would save 30 cents per dollar contributed, compared to just 4 cents for someone in the 19% bracket.
How Division 293 is calculated
Your Division 293 income is calculated as:
Division 293 income = taxable income + low tax contributed amounts
“Low tax contributed amounts” are your concessional contributions up to the concessional cap ($30,000 for 2025–26). If your Division 293 income exceeds $250,000, the additional 15% tax applies to the lesser of:
- Your concessional contributions (up to the cap)
- The amount by which your Division 293 income exceeds $250,000
Other income components
Threshold examples
Here are three scenarios showing how Division 293 applies at different income levels:
| Below threshold | Partially over | Fully over | |
|---|---|---|---|
| Taxable income | $220,000 | $240,000 | $280,000 |
| Concessional contributions | $25,000 | $25,000 | $25,000 |
| Div 293 income | $245,000 | $265,000 | $305,000 |
| Amount taxed at extra 15% | $0 | $15,000 | $25,000 |
| Extra tax payable | $0 | $2,250 | $3,750 |
Division 293 calculator
Enter your income and contributions to check whether Division 293 applies to you:
Is salary sacrifice still worth it?
Even with Division 293, salary sacrifice is often still beneficial. The effective tax on your contributions is 30%, which remains lower than the top marginal rates:
| Scenario | Tax rate |
|---|---|
| Normal contributions tax (in super) | 15% |
| With Division 293 (in super) | 30% |
| Marginal rate at $250k+ (outside super) | 45% + 2% ML |
Still a tax saving
How to pay Division 293 tax
The ATO will issue a Division 293 assessment after you lodge your tax return. You have two options:
- Pay from personal funds — pay the assessment directly to the ATO by the due date
- Release from super — elect to have your super fund pay the tax on your behalf (your fund must comply with this request)
If you choose to release from super, the amount will be deducted from your super balance. Most people choose this option to avoid the immediate cash outlay.
Frequently Asked Questions
Related Guides
Super Guarantee Rate 2025–26
Complete history of the SG rate, current employer obligations, and what it means for your super.
Salary Sacrifice Into Super
How salary sacrifice works, tax benefits, HELP/HECS implications, and contribution cap rules.
Super Contribution Caps 2025–26
Concessional and non-concessional caps, bring-forward rule, and what happens if you exceed them.
Carry-Forward Super Contributions
How to use unused concessional cap space from the last 5 years to catch up on super.