Division 293 Tax
An additional 15% tax on concessional super contributions for individuals with income and super contributions above $250,000.
Division 293 tax is an additional 15% tax on some or all of your concessional super contributions if your income plus concessional contributions exceeds $250,000. This brings the effective tax rate on those contributions to 30% (the standard 15% contributions tax plus the 15% Division 293 tax), reducing the tax concession available to higher-income earners.
The Division 293 income threshold is $250,000, calculated as taxable income plus net investment losses, reportable fringe benefits, and low-tax contributed amounts (concessional super contributions). If your income exceeds $250,000 before adding super, all your concessional contributions are subject to Division 293 tax. If your income is below $250,000 but exceeds it when super is added, only the amount above $250,000 is subject to the additional tax.
The ATO issues a Division 293 tax assessment after your tax return is processed. You can choose to pay it personally or have it released from your super fund. If you don't make a choice within the required timeframe, the ATO will direct your super fund to pay it. Even with Division 293, the 30% rate is still lower than the top marginal rate of 45% plus Medicare levy, so there is still a tax benefit to making concessional super contributions for high earners.
How it works
Division 293 tax adds an extra 15% on top of the standard 15% contributions tax for concessional contributions, once your income plus those contributions exceeds $250,000 — taking the effective rate on the affected portion to 30%. The income test for this purpose adds together your taxable income, net investment losses, reportable fringe benefits, and your low-tax contributed amounts, which is a broader figure than taxable income alone.
You don't see Division 293 on your payslip — it arrives as a separate ATO assessment issued after your tax return has been processed. From there you choose whether to pay it personally or have the amount released from your super fund; if you don't make a choice within the required window, the ATO will direct your fund to pay it for you.
Only the amount of concessional contributions that pushes you over $250,000 combined is caught if your income alone sits below that threshold — but if your income alone already exceeds $250,000, every concessional contribution for the year is subject to the extra tax. Even so, the 30% effective rate remains lower than the top marginal rate plus Medicare levy, so concessional contributions are still tax-effective for high earners, just less generously than for people below the threshold.
Example: partial Division 293 liability
Your taxable income for the year is $240,000, and your concessional contributions (employer SG plus salary sacrifice) total $20,000, bringing your combined Division 293 income to $260,000 — $10,000 over the $250,000 threshold.
Only the $10,000 that pushed you over the threshold is subject to the extra 15% Division 293 tax, giving an additional liability of $1,500, on top of the standard 15% contributions tax already deducted inside your super fund on the full $20,000.
Calculate it yourself
Open calculator →Related Terms
Concessional Contributions
Before-tax super contributions taxed at 15% inside the fund, including employer SG, salary sacrifice, and personal deductible contributions.
Salary Sacrifice
An arrangement where you direct part of your pre-tax salary into super (or other benefits), reducing your taxable income.
Superannuation Guarantee (SG)
The compulsory minimum percentage of an employee's qualifying earnings (formerly ordinary time earnings) employers must contribute to their super fund.
Income Tax
Tax levied by the federal government on your taxable income, calculated using progressive tax brackets.