What is Division 293 tax?

Division 293 tax is an extra tax that applies to higher income earners. It reduces the tax concessions they can receive on their concessional (before-tax) super contributions.

Concessional contributions are generally taxed at a lower rate of 15%, up to your concessional contributions cap.

If the sum of your income¹ and concessional contributions exceeds $250,000, you’ll need to pay an additional 15% tax on the lesser amount of either:

• Your concessional contributions
• The amount exceeding the $250,000 threshold

How is Division 293 tax calculated for defined benefit schemes?

If you are a member of Gold State Super or the WA Public Sector Pension Scheme, there are additional steps to calculate Division 293 tax.

For more information, visit the ATO website or read our Tax and super brochure . You should also consider seeking more information from a qualified financial adviser, as this is a complex area of tax.

1 Income is calculated as your taxable income plus other adjustments, such as reportable fringe benefits and investment losses. Please visit the ATO website to understand what is included and excluded.

Disclaimer: this information is of a general nature, and does not constitute legal, taxation or personal financial advice. In providing this information, we have not taken into account your investment objectives, financial situation or needs. We are not licensed to provide financial product advice. You should read this information in conjunction with other relevant disclosure documents we have prepared. You should seek advice specific to your personal circumstances from a suitably qualified adviser.