What is Division 293?

Division 293 is an additional tax on high income wage earners in Australia.

This tax is payable if you exceed the Division 293 income threshold and have taxable super contributions in a given income year.

What is the Div 293 threshold?

The Division 293 threshold is $250,000.

This means if your combined income and super contributions are more than $250,000, you may be liable for this tax.

How much is this tax?

Division 293 tax is charged at a rate of 15% of an individual’s concessional super contributions (pre-tax super).

What is the process?

  1. Once you lodge your tax return, and the ATO have received your contribution information from your super fund, the ATO will see if you have reached the Division 293 threshold.
  2. Your notice of assessment will be sent to you – either from your accountant or to your MyGov inbox.
  3. Then you will receive a separate notice stating of your Division 293 – this is usually a few weeks later.

How do I pay my Division 293 tax?

  1. Pay with your own money, or
  2. Elect to release money from your existing super balances by completing a Division 293 election form online (this will be sent with your Division 293 notice).

Link back to the ATO

To read more about Division 293 on the Australian Tax Office website, please click here.

 

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