Division 293 Tax

Division 293 Tax was introduced from the 2012–13 year, to reduce the tax concession on superannuation contributions for individuals with income greater than the Division 293 threshold.

From 1 July 2017 onwards, the Division 293 taxable income threshold was reduced to $250,000, from the previous threshold of $300,000. Division 293 tax is charged at 15% of an individual’s taxable superannuation contributions. Division 293 Tax liabilities can be paid either from your own pocket, or by using a release authority that is issued with the Notice of Assessment, allowing permission for the Tax to be paid from your super account.

You can take the release authority to any super fund capable of releasing the money. Division 293 Notices of Assessment are issued by the Australian Taxation Office, usually within 28 days after assessment of your Income Tax Return.