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  • Division 293 tax

    From 1 July 2012, Division 293 tax will be applied to certain super contributions to reduce the concessional tax treatment of those contributions made for high income individuals.

    High income threshold

    The high income threshold is:

    Income year

    Threshold amount

    2017–18 onwards


    2012–13 to 2016–17


    An individual's income is added to certain super contributions and compared to the high income threshold. Division 293 tax is payable on the excess over the threshold, or on the super contributions, whichever is less. The rate of Division 293 tax is 15%.

    Division 293 tax is not payable on excess concessional contributions that have been taxed under Division 292 (or refunded under section 292–467).

    End of year interest

    Where Division 293 tax relates to defined benefit interests, payment of the tax is deferred until a super benefit is paid from the interest. We must keep a debt account for each defined benefit interest for which there is an amount of Division 293 tax that has been deferred.

    End of year interest is calculated on the amount by which the deferred debt account is in debit at the end of the income year at the average 10 year Treasury bond rate for that income year.

    Table 7: Div 293 tax – end of year interest

    Income year

    Average 10 year Treasury bond rate








    N/A *

    * end of year interest was not applied to deferred debt accounts for the 2013–14 income year.

    Note: A temporary 2% levy applies for the 2014–15, 2015–16 and 2016–17 income years to individuals with a taxable income of more than $180,000 per year. The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. This will cease to apply from 1 July 2017.

    Last modified: 22 Sep 2017QC 18123