Additional tax on concessional contributions (Division 293) – for individuals

Division 293 tax is an additional tax on super contributions, which reduces the tax concession for individuals whose combined income and contributions are greater than the Division 293 threshold.

In summary if your Div 293 income (income for medicare levy surcharge purposes) PLUS Div 293 super (concessional super contributions) is more than the Division 293 threshold of $250,000 then you will be charged an additional 15% on your taxable super contributions

How you will know if you have to pay

You will be sent a notice of assessment once we receive both your income and contribution information.

If you lodge your tax return using myTax, your notice of assessment will be sent to your myGov Inbox. If you want your notice of assessment to go to your registered tax agent instead, you will need to ask them to update your communication preferences

Example

Div 293 income $230,000
Plus concessional super  contributions $27,500 (note limits apply)
Total Div 293 income = $257,500 which is over the $250,000 threshold

So you will be required to pay the Div 293 15% tax on your concessional super contributions = 15% x $27,500 = $4,125 payable

Before paying extra concessional superannuation contirubutions consider whether you have breached the $250,000 threshold