Division 293 thresholds 2025-26 Australia
Quick answer: Division 293 starts once your income plus low-tax concessional contributions moves above $250,000.00. From that point, some or all of your concessional contributions can face an extra 15% tax on top of the usual 15% contributions tax.
What pushes you over the threshold
- Taxable income is not the whole story. Salary sacrifice and employer super contributions also matter.
- The tax applies to the lesser of your concessional contributions or the amount above $250,000.00.
- If you are already well above the threshold, your concessional contributions can effectively be taxed at 30% instead of 15%.
2025-26 threshold checkpoints
| Income | Concessional contributions | Division 293 income | Extra tax |
|---|---|---|---|
| $220,000.00 | $26,400.00 | $246,400.00 | Nil |
| $235,000.00 | $28,200.00 | $263,200.00 | $1,980.00 |
| $250,000.00 | $30,000.00 | $280,000.00 | $4,500.00 |
| $280,000.00 | $30,000.00 | $310,000.00 | $4,500.00 |
What usually matters in the decision
- If you are just above the line, only part of your concessional contributions may face Division 293.
- If you are far above the line, salary sacrifice usually still saves tax, but not as much as the standard 15% story suggests.
- If you are planning extra super contributions, check the concessional cap and Division 293 together rather than separately.
Model the super outcome
Use the super calculator to combine projections, concessional contributions and Division 293 impact.
Review the full super caps guide
Open the broader reference page for concessional, non-concessional and carry-forward rules.
See the long-form scenario
Use the scenario page if you want the deeper explanation and worked examples.
FAQ
What is the Division 293 threshold for 2025-26?
Division 293 starts once Division 293 income plus low-tax concessional contributions exceeds $250,000.00.
Does salary sacrifice count towards Division 293?
Yes. Salary sacrifice contributions are concessional contributions and are counted in the Division 293 calculation.
Is salary sacrifice still worth it if Division 293 applies?
Usually yes. The tax on affected concessional contributions rises to 30%, which is still below the top personal tax rate plus Medicare levy.
Tax Accuracy & Sources
This page summarizes the 2025-26 Division 293 trigger and the basic high-income decision logic. It is a planning guide, not a personal tax assessment.