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

    Currently members with income and concessional super contributions in excess of $300,000 will trigger a Division 293 assessment.

    From 1 July 2017, the government will lower the Division 293 income threshold to $250,000. A member 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 of impacts for self-managed super funds

    • From 1 July 2018, release authorities will now 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.
    • Release authorities will remain paper-based.
    • The end benefit cap, for deferred debt accounts, is calculated only when prescribed by law.
    Last modified: 22 Feb 2017QC 51299