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Division 293 Tax

Division 293 Tax: What You Need to Know

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Written by Global FPO Team

Division 293 Tax: What You Need to Know

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Division 293 tax is an additional 15% tax on concessional (before-tax) super contributions for individuals whose income and super contributions exceed AUD 250,000 in a financial year. The tax applies only to concessional super contributions, including employer Super Guarantee contributions, salary sacrifice amounts, and personal deductible contributions. Division 293 income includes more than just salary. It also considers taxable income, reportable fringe benefits, investment income, certain net investment losses, and employer super contributions when assessing eligibility. Although Division 293 increases the tax on eligible super contributions from 15% to 30%, superannuation remains one of Australia's most tax-effective retirement savings vehicles for high-income earners. Regularly monitoring your income and super contributions, reviewing salary sacrifice arrangements, and seeking professional tax advice can help minimize unexpected Division 293 tax liabilities and support long-term retirement planning.

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Division 293 tax is an extra 15% tax applied to concessional super contributions if your income plus those contributions exceeds $250,000 in a financial year.

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