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  • Division 293 and excess concessional contributions

    When we work out your low-tax contributions for Division 293 we don’t include amounts taxed as excess concessional contributions.

    Excess contributions are taxed in other ways so you are no longer receiving a concession for them. In these circumstances, applying the additional 15% Division 293 tax to those contributions would not be fair.

    As a result, low-tax contributions are generally equal to concessional contributions minus excess concessional contributions.

    Impact of discretions

    Unlike excess contributions, the Commissioner of Taxation does not have discretion to disregard or reallocate contributions in the calculation of Division 293 tax.

    Therefore, if you choose to not be taxed on your excess contributions, by asking the Commissioner to disregard or reallocate them to another year, then they will remain low-tax and need to be included back into the Division 293 calculation.

      Last modified: 05 Jan 2018QC 36272