If your combined income and super contribution exceed the Division 293 threshold, you pay additional tax on the super contribution which reduces the tax concession. The additional 15% tax is payable on either the amount of the super contribution or the amount that is over the threshold – whichever amount is lower.
For individuals, the Division 293 threshold for the 2017-2018 financial year and onwards is $250,000.
Example:
| Division 293 income | $240,000 |
| Division 293 super contributions | $20,000 |
| Total | $260,000 |
Division 293 tax payable is the lesser of Division 293 super contributions ($20,000) or the amount above the $250,000 threshold ($10,000). Consequently, in this example Division 293 tax payable is 15% of $10,000, which is $1,500.
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