Division 293 tax - definition & overview
Contents
What is Division 293 tax?
Division 293 tax is an additional tax levied on concessional (before-tax) superannuation contributions for high income earners in Australia.
Key points
- Applies to individuals whose combined income and concessional super contributions exceed $250,000 per financial year.
- Charged at a rate of 15% on the amount exceeding the threshold, or the total concessional contributions, whichever is less.
- Designed to reduce the tax benefit for high income earners making super contributions, bringing it closer to the tax concessions received by average income earners.
Further information
- Australian Taxation Office: Division 293 tax
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