• Reduction of Division 293 income threshold to $250,000

    Previously individuals with income and concessional super contributions in excess of $300,000 triggered a Division 293 assessment.

    Effective 1 July 2017, the government lowered the Division 293 income threshold to $250,000 for the 2017-18 and future financial years. An individual with income and concessional super contributions, exceeding the $250,000 threshold, will have an additional 15% tax imposed on the amount over the threshold up to the total amount of concessional contributions not exceeding their concessional contributions cap.

    The intent of this change is to better target tax concessions to ensure the superannuation system is equitable and sustainable.

    See also:

    Summary impacts for APRA-regulated funds

    • You may have to process more release authorities because more of your members will be charged Division 293 tax.
    • From 1 July 2018, release authorities will come only from us and must be returned to us along with the payment. This means you will need to send monies to the ATO.
    • An end benefit cap, for deferred debt accounts, is calculated only when prescribed by law.
    Last modified: 25 Sep 2017QC 51312