Calculate the Division 293 additional tax (15%) on concessional super contributions for high-income earners in Australia. Applies when income + concessional contributions exceed $250,000.
| Item | Amount |
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Division 293 imposes an additional 15% tax on concessional super contributions made by or for individuals whose combined income and concessional contributions exceed $250,000. This means high earners pay an effective 30% tax rate on their concessional contributions (15% in the fund + 15% Div 293), matching the top personal marginal rate more closely.
The ATO issues a Division 293 assessment after your tax return is lodged. You can pay the tax from your super fund (release authority) or personally. It applies to the lower of: (a) concessional contributions, or (b) the amount by which income + contributions exceed $250,000.
Division 293 tax is an additional 15% tax on concessional (before-tax) super contributions for individuals whose combined income and concessional contributions exceed $250,000. It brings the total contributions tax for high earners to 30% (standard 15% + Division 293 15%), reducing (but not eliminating) the tax advantage of super for this group.
| Scenario | Income | Concessional Contributions | Excess over $250k | Div 293 Tax |
|---|---|---|---|---|
| Just over threshold | $235,000 | $25,000 | $10,000 | 15% × $10,000 = $1,500 |
| Well over threshold | $300,000 | $27,500 | $77,500 | 15% × $27,500 = $4,125 |
| Maximum cap used | $350,000 | $30,000 | $130,000 | 15% × $30,000 = $4,500 |
The tax is 15% of the lower of: (a) concessional contributions, or (b) the excess above $250,000.
The ATO issues a Division 293 assessment after your tax return is lodged. You can either: pay from personal funds (preferred — keeps super balance intact), or elect to release the tax from your super fund via a Division 293 release authority.
Who pays Division 293 tax?
Anyone whose combined taxable income (including reportable fringe benefits and investment losses) plus concessional super contributions exceeds $250,000 in a financial year. This primarily affects high-earning professionals, executives, and business owners. The $250,000 threshold has not been indexed since Division 293 was introduced in 2012-13.
How much is Division 293 tax?
15% of the lower of: your total concessional contributions, or the amount your combined income and contributions exceeds $250,000. At maximum concessional cap ($30,000 for 2025-26) and well above the threshold, the maximum Division 293 liability is $4,500 per year.
Can I reduce my Division 293 tax?
Strategies include: making after-tax (non-concessional) contributions instead — these are not subject to Div 293; timing salary sacrifice to stay below $250,000 combined; or contributing to a spouse's super if their income is lower. Note that even with Division 293, super contributions at 30% total tax are still more efficient than income taxed at 47%.