Small Business Glossary

Division 293 tax

Division 293 tax is an additional tax levied on concessional (before-tax) superannuation contributions for high income earners in Australia.

Key points

  • Applies to individuals whose combined income and concessional super contributions exceed $250,000 per financial year.
  • Charged at a rate of 15% on the amount exceeding the threshold, or the total concessional contributions, whichever is less.
  • Designed to reduce the tax benefit for high income earners making super contributions, bringing it closer to the tax concessions received by average income earners.

Further information

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