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  • 1. Introduction

    The intent of the learner guide is to provide an understanding of Division 293 tax, focusing on:

    • the imposition and calculation of Division 293 tax
    • low-tax contribution rules
    • modifications
    • assessment and payment (including for defined benefits).

    The government announced in the 2012–13 Budget that it will make the superannuation system fairer through a reduction of the tax concession on concessional contributions of very high-income earners so it is more in line with the tax concession received by average income earners.

    The Division 293 tax implements the government’s ‘Superannuation – reduction of higher tax concession for very high-income earners’ measure, also known as the ‘Sustaining the superannuation contribution concession’ measure.

    From 1 July 2012, a person whose income is greater than $300,000 will have the tax concession on certain super contributions reduced from 30% to 15% by imposing an additional 15% tax under Division 293 of the Income Tax Assessment Act 1997.

    All legislative references in this learner guide are to the Income Tax Assessment Act 1997 (ITAA 1997), unless stated otherwise.

    Learning outcomes

    After completing this learner guide you will be able to:

    • describe the circumstances that will give rise to a Division 293 assessment for both accumulation and defined benefit funds
    • explain how special Division 293 rules operate
    • outline the release authority requirements
    • outline Division 293 collection and recovery rules
    • recognise the relationship between Division 293 and excess concessional contributions.


    This material has been developed solely for external Australian Taxation Office (ATO) training purposes and must not be used as a legislative support tool in the workplace. Every effort was made to ensure this material was accurate and up-to-date at the time of publication, but users are advised of the need to check for any changes that have affected the currency of this material and conduct their own research and inquiries in relation to any interpretation of the law. The ATO accepts no responsibility for any loss or damage incurred as a result of the use of this material in personal transactions that are not part of ATO official business.

      Last modified: 06 Sep 2017QC 43294