Estimate whether Division 293 tax may apply to your concessional super contributions and the potential additional tax based on your income and contribution figures.
Division 293 reduces the tax concession on certain concessional super contributions for higher-income individuals. It applies when Division 293 income plus relevant super contributions exceeds the $250,000 threshold.
The additional tax rate is 15%. Broadly, the taxable amount is the lesser of the relevant taxable super contributions and the amount by which the combined Division 293 income and contributions exceed $250,000. The ATO uses information from your tax return and super funds to issue the assessment, and the Division 293 income calculation is not simply the same as taxable income. This calculator provides an early estimate for planning purposes.
Understand the $250,000 threshold, taxable contributions and how the ATO issues an assessment.
The threshold is $250,000. Division 293 can apply where your Division 293 income plus relevant concessional super contributions exceeds that amount.
The additional tax rate is 15%. It is applied to the lesser of the taxable super contributions and the amount above the $250,000 threshold.
No. The Division 293 income calculation starts with tax-return information but also includes or adjusts specified amounts such as reportable fringe benefits and certain investment or rental losses. That is why taxable income alone may not produce the correct result.
Relevant contributions generally include concessional contributions such as employer contributions, salary sacrifice amounts and deductible personal contributions, subject to the detailed rules and any adjustments made by the ATO.
The ATO generally issues a Division 293 assessment after it has received the required information from your income tax return and your super fund or funds. The assessment can be amended if contribution information changes later.
SMH Accountants & Advisors can help you estimate the impact of income, deductions and concessional contributions before year-end decisions are made.
