Division 293 Tax 2027
AU Div 293: extra 15% on concessional super contributions if income + super > $250K. Effectively raises super contribution tax from 15% to 30%.
| Taxable income | — |
| Concessional contributions | — |
| Combined total | — |
| Threshold ($250K) | — |
| Excess above threshold | — |
| Div 293 base | — |
| Div 293 tax (15%) | — |
| Effective super contribution rate | — |
Division 293 imposes an additional 15% tax on concessional super contributions for high-income earners — those whose income plus concessional contributions exceed $250 000. Effectively doubles the contribution tax rate from 15% to 30% on contributions above the threshold.
Income Calculation for 293
Income = taxable income + reportable fringe benefits + total net investment loss + reportable super contributions (salary sacrifice). Plus concessional contributions added. Total over $250K triggers the 15% additional tax.
Still Beats Marginal Rate
Even with 30% effective contribution rate, super still wins. Marginal rate for $250K+ income is 45% + 2% Medicare = 47%. Saving in super at 30% vs paying tax at 47% = 17 percentage point advantage. Plus tax-free withdrawals after 60.
Payment Options
Pay from cash flow (preferred — preserves super) OR release from super (faster but reduces balance). Released amount becomes available within 60 days of ATO determination. ATO sends notice automatically after assessment.
Last updated May 2026. Sources: ATO Div 293.