What is Division 293 tax?
Division 293 tax is an extra 15% tax on concessional super contributions for people whose income plus those contributions is more than $250,000 in a year. The ATO charges it on the excess over the threshold or the contributions, whichever is less, and sends a notice after it receives the person's tax return and their fund's contribution data.
How the ATO works it out
The ATO compares two figures with the $250,000 threshold:
- Division 293 income, taken from the person's tax return.
- Division 293 super contributions, which are the concessional contributions reported by their funds, not counting any excess over the cap.
If the two together are more than $250,000, the tax is 15% of whichever is smaller: the amount over the threshold, or the contributions.
A worked example from the ATO
The ATO gives this example. Jan's Division 293 income is $240,000 and her Division 293 super contributions are $15,000, a total of $255,000. The taxable amount is the lesser of $15,000 and the $5,000 above the threshold, so $5,000. Jan's Division 293 tax is 15% of $5,000, which is $750.
What high earners commonly ask about
- The threshold is not indexed. The ATO shows the same $250,000 figure for every year since 2017–18, while the concessional cap has risen to $32,500 for 2026–27.
- Carry-forward contributions count. Where unused cap amounts from earlier years are used, the ATO counts the higher contributions for Division 293.
- More than one fund can mean an amended notice. If a second fund reports late, the ATO may reissue the assessment.
Where advice fits
Division 293 is one part of a wider picture that includes cash flow, investments held outside super, family arrangements and the tax work done by an accountant. Private clients can read more about financial planning for high net worth individuals, and specialists about financial planning for medical professionals. Financial advice is provided by MGB Financial Services. Tax advice stays with a registered tax agent.
How Vermilion can assist
Vermilion offers a free initial 15-minute chat about the questions this article raises. If personal advice is wanted, Vermilion can arrange an introduction to MGB Financial Services, which provides the advice. Vermilion does not give financial advice.
Sources
- Australian Taxation Office, Division 293 tax on concessional contributions by high-income earners, checked 21 October 2026.
- Australian Taxation Office, Division 293 tax threshold, checked 21 October 2026.
Questions
Questions people ask
What is the Division 293 threshold?
The ATO lists the threshold as $250,000 for every income year from 2017–18 onwards. Before that it was $300,000.
Does anyone need to apply for Division 293 to be assessed?
No. The ATO works it out after it has both the income tax return and the contribution information reported by the super fund, then sends a Division 293 notice, usually to the person's myGov inbox or their tax agent.
Can a one-off event trigger Division 293?
Yes. The ATO notes that a capital gain, an eligible termination payment or back pay can lift income above the threshold for a single year, even where usual income is lower.
How can Division 293 tax be paid?
The ATO allows the tax to be paid personally or, in many cases, released from a super fund using the election that comes with the notice. Which option suits a particular person is a matter for personal advice.
