Division 293 Tax Explained: How Extra Super Tax Works in Australia (2026 Guide)

Division 293 Tax on Concessional Contributions (Australia 2026 Guide)

If your income and concessional super contributions exceed $250,000, you may be required to pay Division 293 tax.

This additional tax reduces the concessional tax benefits on super contributions for high-income earners and is strictly monitored by the Australian Taxation Office (ATO).

About Division 293 Tax

Division 293 tax is an additional 15% tax applied to concessional super contributions when your combined income and contributions exceed $250,000.

It is calculated as:
15% of the lesser of:

• The amount above $250,000 threshold
• OR your concessional super contributions

How You Will Know If You Need to Pay

• The ATO will issue a Division 293 Notice of Assessment after receiving:
• Your income tax return
• Contribution data from your super fund

If you lodge via myTax, the notice will appear in your myGov inbox
You can redirect it to your tax agent if required

When Preparing Your Tax Return

If your income indicates you may exceed the threshold:
The ATO may notify you during tax return preparation

Final assessment is only issued once super contribution data is received

If You Believe Your Assessment Is Incorrect

• Check:
• Income details
• Super contributions reported

If incorrect:
Update your tax return OR contact your super fund

If still unresolved:
You can lodge a formal objection

How to Pay Division 293 Tax

You can pay:

From personal funds
By releasing money from super

Pay by due date to avoid interest charges

How Division 293 Tax Is Calculated

• ATO uses:
• Your tax return to calculate income
• Super fund data to calculate contributions

If multiple funds report later amended assessment may be issued

When Division 293 Applies

You must have:

Concessional contributions (SG, salary sacrifice, personal deductible contributions)
Total income + contributions exceeding $250,000

Example

• Income = $240,000
• Super contributions = $15,000
• Total = $255,000

Excess = $5,000
Tax payable = 15% of $5,000 = $750

Division 293 Income (Important)

Based on Medicare Levy Surcharge (MLS) calculation:

• Includes:
• Taxable income
• Fringe benefits
• Investment losses
• Rental losses
• Trust distribution tax amounts

• Adjustments:
• Some super lump sums
• First Home Super Saver released amounts

One-Off Events That Trigger Division 293

Even if normally below threshold, you may be impacted by:

• Capital gains
• Back payments
• Termination payments
• Sudden income increases

Division 293 Super Contributions

Includes concessional contributions:

• Employer super (SG)
• Salary sacrifice
• Personal deductible contributions

Carry-forward contributions are also included

Taxable Super Contributions

Calculated as the lesser of:

• Total contributions
• Amount exceeding threshold
• No Discretion Rule

Unlike excess contributions:
ATO cannot reallocate or ignore contributions for Division 293

Division 293 for Defined Benefit Members

Contributions are calculated based on annual benefit growth
Tax liability may be deferred

Deferred Debt Rules

• Separate debt account created
• Interest applies if unpaid
• Payable when benefit is released

End Benefit Rules

When super benefit is paid:
Debt becomes payable within 21 days

• Certain payments excluded:
• Rollovers
• Hardship withdrawals
• Compassionate releases

Higher-Level Office Holders (Special Rules)

Certain state officials and judges may be exempt when contributing to:
Constitutionally Protected Funds (CPFs)

Refund for Former Temporary Residents

You may claim a refund if:
You received a departing super payment

You apply in approved form

SG Amnesty Contributions

Do NOT count for Division 293
Already excluded in most ATO calculations

Releasing Money from Super

You can elect to pay tax using super funds:

• Election must be made within 60 days
• Does NOT extend payment due date
• ATO sends release authority to fund

Election cannot be reversed

Why Division 293 Matters

• Reduces tax benefits on super
• Impacts high-income earners
• Can apply unexpectedly due to one-off income

Final Takeaway

Division 293 ensures high-income earners pay fair tax on super contributions
Understanding your position helps avoid surprises and manage tax effectively

How Supertax Helps

At Supertax, we simplify complex tax rules:

• Income & contribution analysis
• Division 293 impact planning
• Tax return accuracy
• Super contribution strategy
• ATO compliance support

Helping you stay compliant while optimising your tax position

CONTACT SUPERTAX

Website: https://supertax.com.au/

• Suite 1, 7 Bridge St, Werribee VIC 3030
• (03) 7074 8818
• info@supertax.com.au

This article contains general information only and does not take your personal circumstances into account. Tax and superannuation rules change, and some measures discussed may be subject to legislation. Speak with a registered tax agent before acting.