Show download pdf controls
  • Change to Division 293 income threshold

    Previously, individuals with income and concessional super contributions greater than $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 lesser of:

    • the excess, or
    • the concessional contributions (except excess contributions).

    Examples

    Example 1

    Tara's income is $260,000 and her concessional contributions are $5,000.

    The sum of Tara's income and concessional contributions for the income year is $265,000.

    Tara will be assessed for Division 293 tax on the lesser of the amount over $250,000 ($15,000) and her concessional contributions ($5,000).

    Tara will receive a Division 293 assessment for 15% tax on $5,000.

    End of example

     

    Example 2

    James' income is $240,000 and his concessional contributions are $25,000.

    The sum of James' income and concessional contributions for the income year is $265,000.

    James will be assessed for Division 293 tax on the lesser of the amount over $250,000 ($15,000) and his concessional contributions ($25,000).

    James will receive a Division 293 assessment for 15% tax on $15,000.

    End of example

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

    See also:

    Last modified: 27 Nov 2017QC 51331