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Has your member received a Division 293 assessment?

There are a number of steps you and your member need to take before you can release any payments.

Published 27 June 2024

Individuals may receive an additional tax on their super contributions, known as Division 293 tax, if their combined income and contributions are greater than the threshold during a financial year. This threshold is currently $250,000.

We determine if there is a Division 293 liability once your member has lodged their tax return, and your SMSF has lodged its annual return.

If your member has a liability we will send them a Division 293 notice of assessment. One of their options is to pay it by electing to release some of their contributions from their super. Payment of this liability is the responsibility of the individual who received it and it must be paid by the due date on the assessment. Individuals have 60 days to elect to release money from super to pay the Division 293 liability however this does not change the actual due date for payment.

Your SMSF can't release any amounts until:

Once your member has made their election, we will send you a release authority through your SMSF messaging provider. If you don’t have a messaging provider, you will receive a paper form.

Once you have actioned the release authority, you are required to pay us the amount. We will then use this amount to pay the Division 293 liability. Any remaining amount is offset against other debts before being paid to your member.

If you release funds prior to receiving a release authority, a contravention will occur and you may be liable for penalties. In this event you should consider submitting a voluntary disclosure form.

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