Division 293 Tax
Division 293 tax on concessional contributions by high-income earners
Division 293 tax is a tax measure by the Australian Government aimed at making the tax benefits of superannuation contributions more equitable. Typically, super contributions are taxed at a lower rate (15%), which greatly benefits higher income earners due to their higher marginal tax rates. To address this, Division 293 imposes an additional 15% tax on super contributions for individuals earning above a certain threshold ($250,000 as at 2023/24). This reduces the tax advantage for high-income earners, ensuring a fairer distribution of tax concessions across all income levels.
How you will know if you need to pay?
If you're liable to pay, we will send you an Additional tax on concessional contributions (Division 293) notice after we receive both your income tax return and contribution information from your super fund.If you lodge your tax return using myTax, your Division 293 notice will be sent to your myGov inbox. If you want your notice to go to your tax agent instead, ask them to update your communication preferences.
What you need to do now?
There are two options for making a payment (your payment can be made using any combination of these):1. Pay with your own money.
2. Elect to release money from any of your existing super balances by completing a Division 293 election form online.
(a) Division 293 income
Your Division 293 income is your taxable income from your income tax return.(b) Division 293 super contributions
Your Division 293 super contributions are the total of all your concessional contributions.Further information
Avoid interest charges
- You need to pay the due and payable amount by the due date to avoid paying interest charges.
- Though your election form is valid for 60 days you still need to pay by the due date to avoid interest charges.
Releasing money from super
To release money from any of your existing super balances you can access our ATO online services through myGov. You have up to 60 days from the date of your Division 293 assessment to make your election.When you complete the election form we will ask your nominated super fund(s) to release the amount you elected and send the money to us.
If you are not already registered with myGov visit our website at ato.gov.au/onlineservices to register.
You can also download the form via our website ato.gov.au/div293electionform, or order the form via our website ato.gov.au/onlineordering, and send it to us.
View your online statement of account
To view your tax and super accounts online all you need is a myGov account linked to our ATO online services.If you are not already registered with myGov visit our website at ato.gov.au/onlineservices to register.
If you have a tax agent, they can also view your tax and super accounts through the Tax Agent Portal.
If you disagree
If you disagree with:- the income we have used, you will need to review your income tax return.
- the contributions reported, contact your super fund.
- our assessment, you can lodge an objection. Visit ato.gov.au/objections to find our more. If you do lodge an objection to the assessment you still need to pay the due and payable amount by the due date.
Find out more
For more information about Division 293 tax:- visit ato.gov.au/division293
- phone us on 13 10 20 between 8:00am and 6:00pm, Monday to Friday.
Book an appointment with Befinancial Accounting.
Contact - 1300 699 161Email - info@befinancial.com.au
32 Main Rd Bakery Hill, VIC 3350