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  • How much will your Division 293 tax be?

    If your income for surcharge purposes plus low-tax contributions is over the Division 293 threshold, you are taxed at 15% on either your contributions, or the amount that is over the threshold – whichever amount is lower.

    We calculate your Division 293 tax amount by following these steps in:

    • determining your income for surcharge purposes.
    • determining your low-tax contributions.
    • adding your income for surcharge purposes and your low-tax contributions.

    If the combined figure is greater than the threshold, you have taxable contributions. Taxable contributions will be the lesser of either

    • the low-tax contributions
    • the amount above the threshold

    The tax applied will be 15% of the taxable contributions.

    Example:

    Income for surcharge purposes

    $240,000

    Low-tax contributions

    $15,000

    Total

    $255,000

    Division 293 tax payable is lesser of low-tax contributions ($15,000) or the amount above the threshold ($5,000).

    Division 293 tax payable is 15% of $5,000

    Division 293 tax payable is $750

    End of example

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      Last modified: 05 Jan 2018QC 36272