Division 293 Tax Calculator
Calculate your Division 293 tax liability for the current financial year
Your Division 293 Tax Results
Comprehensive Guide to Division 293 Tax Calculator (Excel Alternative)
Division 293 tax is an additional tax on concessional superannuation contributions for individuals with income and contributions above certain thresholds. This guide explains how the tax works, who it affects, and how to calculate it accurately.
What is Division 293 Tax?
Division 293 tax is an additional 15% tax on certain concessional super contributions for high-income earners. It was introduced to ensure that high-income individuals pay tax on their super contributions at rates comparable to their marginal tax rates.
- Applies to: Individuals whose combined income and concessional contributions exceed $250,000
- Rate: Additional 15% tax on the lesser of:
- Taxable concessional contributions, or
- Amount by which income plus contributions exceed $250,000
- Threshold: $250,000 (since 1 July 2017, previously $300,000)
Who Needs to Pay Division 293 Tax?
You may be liable for Division 293 tax if:
- Your income for surcharge purposes plus your low tax contributions exceed $250,000
- You have concessional contributions (employer contributions, salary sacrifice, or personal deductible contributions)
- You’re not a member of certain defined benefit funds that are exempt
| Financial Year | Division 293 Threshold | Additional Tax Rate |
|---|---|---|
| 2023-24 | $250,000 | 15% |
| 2022-23 | $250,000 | 15% |
| 2021-22 | $250,000 | 15% |
| 2017-18 to 2020-21 | $250,000 | 15% |
| 2012-13 to 2016-17 | $300,000 | 15% |
How to Calculate Division 293 Tax
The calculation involves several steps:
- Determine your income for surcharge purposes:
- Taxable income
- Reportable fringe benefits
- Net financial investment loss
- Net rental property loss
- Certain other amounts
- Add your low tax contributions:
- Concessional (before-tax) super contributions
- Notional taxed contributions for defined benefit interests
- Compare to threshold:
- If total ≤ $250,000: No Division 293 tax
- If total > $250,000: Calculate tax on the lesser of:
- Your low tax contributions, or
- The amount by which your total exceeds $250,000
- Apply 15% tax rate: Multiply the amount from step 3 by 15%
Division 293 Tax vs Regular Super Tax
| Aspect | Regular Super Tax | Division 293 Tax |
|---|---|---|
| Who pays | All super fund members | High-income earners only |
| Tax rate | 15% on concessional contributions | Additional 15% (total 30%) |
| Threshold | No threshold | $250,000 income + contributions |
| Payment responsibility | Super fund pays from contributions | Individual pays (can release from super) |
| Reporting | Automatic by super fund | ATO assessment after tax return |
How to Pay Division 293 Tax
If you receive a Division 293 assessment from the ATO:
- You’ll receive a notice of assessment after lodging your tax return
- You have 21 days to pay the amount due
- Payment options include:
- Pay directly to the ATO
- Release money from your super fund to pay the tax
- Combination of both methods
If you choose to release from super, you’ll need to complete a Division 293 election form and submit it to the ATO. The ATO will then issue a release authority to your super fund.
Strategies to Minimize Division 293 Tax
If you’re approaching the $250,000 threshold, consider these strategies:
- Salary sacrificing: Carefully manage the timing of salary sacrifice contributions to stay below the threshold
- Non-concessional contributions: Make after-tax contributions which aren’t subject to Division 293 tax
- Spouse contributions: Consider contributing to your spouse’s super if they have lower income
- Timing of income: If possible, defer income to a later financial year
- First Home Super Saver Scheme: Withdrawals under this scheme aren’t counted toward Division 293 income
Common Mistakes to Avoid
When dealing with Division 293 tax, be aware of these common pitfalls:
- Ignoring reportable fringe benefits: These are included in your income for Division 293 purposes
- Forgetting investment losses: Net financial investment losses and rental property losses are added back to your income
- Overlooking defined benefit contributions: Notional taxed contributions for defined benefit funds count toward the threshold
- Missing the payment deadline: Late payments may incur interest charges
- Not reviewing assessments: Always check your ATO assessment for accuracy
Division 293 Tax and Defined Benefit Funds
Special rules apply to defined benefit funds:
- Notional taxed contributions: The ATO calculates these based on your defined benefit interest
- Different calculation method: Uses a formula based on your benefit accrual
- Exempt funds: Some constitutionally protected funds and certain state schemes are exempt
- Untaxed elements: May be subject to different tax treatment
If you’re in a defined benefit fund, your fund should provide you with information about your notional taxed contributions each year.
Division 293 Tax in Excel: How to Create Your Own Calculator
While our online calculator provides instant results, you may want to create your own Excel version. Here’s how:
- Set up your worksheet:
- Create cells for taxable income, reportable fringe benefits, and other income components
- Add cells for concessional contributions
- Include a cell for the $250,000 threshold
- Create calculation formulas:
- =SUM(income components) + concessional contributions
- =MAX(0, (total from above) – $250,000) to find excess
- =MIN(excess, concessional contributions) to find taxable amount
- =taxable amount * 15% for the tax payable
- Add validation:
- Data validation to ensure positive numbers
- Conditional formatting to highlight when tax is payable
- Create a summary section:
- Display the taxable amount and tax payable
- Show effective tax rate on contributions
- Include notes about payment options
For a more advanced Excel calculator, you could add:
- Multiple financial years with different thresholds
- Defined benefit fund calculations
- What-if analysis for different contribution scenarios
- Charts to visualize your tax position
Important Disclaimer: This calculator and guide provide general information only. Division 293 tax calculations can be complex, especially for defined benefit funds or when dealing with multiple income sources. For personalized advice, consult a qualified tax professional or financial advisor. The information provided does not constitute financial advice.
Official Resources and Further Reading
For the most accurate and up-to-date information, refer to these official sources: