What Is Division 293 Tax?

Division 293 is an additional 15% tax on concessional (before-tax) superannuation contributions for individuals whose income plus contributions exceeds $250,000 in a financial year. Combined with the standard 15% contributions tax, this brings the total tax on caught contributions to 30% — still well below the 47% top personal marginal rate (including Medicare levy).

The Formula

The "lesser of" rule matters — you're never taxed on more than your actual contributions, even if your income excess is larger.

How to Use This Calculator

Enter your taxable income, any reportable fringe benefits, and net investment or rental losses (these get added back for Division 293 purposes, even though they reduced your taxable income). Add your concessional super contributions for the year — employer Super Guarantee, salary sacrifice, and personal deductible contributions all count.

The Threshold Hasn't Moved Since 2017

The Division 293 threshold was reduced from $300,000 to $250,000 effective 1 July 2017 and has remained unchanged since — meaning more people get caught by it each year as wages grow with inflation, even without any change to the rule itself.

One-Off Events Can Trigger It Unexpectedly

• Selling an investment property or shares (capital gains)
• Receiving a redundancy or termination payment
• An unusually large bonus

Any of these can push someone who normally earns well under $250,000 over the threshold for that single year — Division 293 is assessed year by year, not as a permanent status.

Super Is Still Worth It

Even at the full 30% combined tax rate, concessional super contributions still deliver a meaningful saving compared to the 47% top marginal personal tax rate — a 17 percentage point gap that compounds significantly over a career, even after Division 293 applies.

How You Pay It

Division 293 tax is assessed separately from your regular tax return, with its own notice typically arriving 2–4 weeks after your main assessment. You can pay it personally (due 21 days from the notice) or elect to release the amount from your super fund (60-day deadline) — most people choose the release option since the money was already taxed at the concessional 15% rate going in.

Where This Fits Your Bigger Picture

If you're also approaching the Division 296 threshold on total balance, check our Division 296 calculator. Pair this with our salary sacrifice calculator to plan contributions with Division 293 in mind.

Frequently Asked Questions