Division 293 Tax Explained

By GrowThenDraw Editorial Team · Updated August 1, 2026 · 6 min read · Editorial policy

Division 293 adds 15% tax to some concessional super contributions of higher-income individuals. The threshold test is simple once the correct ATO inputs are known, but those inputs are broader than salary.

The lesser-of calculation

Add Division 293 income and low-tax contributions. Subtract the $250,000 threshold. The amount subject to the extra 15% is the lesser of the positive excess and low-tax contributions.

At $240,000 of income and $25,000 of contributions, the combined amount is $265,000. Only $15,000 is above the threshold, producing $2,250 of Division 293 tax.

Primary sources

ATO: Division 293

Income is wider than taxable salary

The ATO calculation can include taxable income and adjustments such as reportable fringe benefits and net investment losses, with specific treatment for some super lump sums. Use the amounts on ATO information rather than reconstructing the legal definition from a payslip.

Assessment and payment

The ATO generally issues a Division 293 assessment after processing the tax return and receiving contribution data. The notice explains payment and any super release election. A calculator can check the arithmetic but cannot issue or amend an assessment.

Frequently asked questions

Does Division 293 make contributions tax 30%?

On the portion subject to Division 293, the usual 15% contributions tax plus the additional 15% produces a 30% effective contributions tax.

Can the tax apply if income alone is below $250,000?

Yes. The test adds low-tax contributions to Division 293 income, so the combined amount can cross the threshold.