Check whether Division 293 tax applies to you and how much it will be. Division 293 adds an extra 15% tax on some or all of your concessional (before-tax) super contributions when your income plus those contributions is more than $250,000. With a taxable income of $230,000 and $30,000 of concessional contributions, your Division 293 income is $260,000, which is $10,000 over the threshold, so the tax is $1,500.
Division 293 Tax Calculator
Extra 15% tax on super contributions for high incomes · Updated 13 October 2026
- Division 293 income
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- Amount over the $250,000 threshold
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- Contributions counted
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- Contributions taxed under Division 293
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- Concessional cap available
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- Excess concessional contributions
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- Tax rate on those contributions
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For accumulation funds. Defined benefit members, state higher-level office holders and Commonwealth judges have special rules. Super lump sums taxed at a zero rate, first home super saver amounts and family trust distributions are not included.
How Division 293 tax is calculated
- Division 293 income = taxable income + reportable fringe benefits + net financial investment losses + net rental property losses + concessional contributions (not counting any excess over your cap).
- If that total is more than $250,000, Division 293 applies.
- The tax is 15% of whichever is less: your concessional contributions counted, or the amount your Division 293 income is over $250,000.
- The threshold has been $250,000 since 2017–18 and is not indexed, so more people reach it each year as wages grow.
This means people just over the threshold pay the extra 15% only on the part above $250,000, while people well over it pay it on all of their concessional contributions. Together with the 15% the fund pays, those contributions are taxed at 30%, which is still less than the top marginal rate of 47% including the Medicare levy.
| Year | Division 293 threshold | Concessional cap | Super guarantee |
|---|---|---|---|
| 2025–26 | $250,000 | $30,000 | 12% |
| 2026–27 | $250,000 | $32,500 | 12% |
Worked examples
| Taxable income | Concessional contributions | Division 293 income | Taxed under Division 293 | Tax |
|---|---|---|---|---|
| $200,000 | $30,000 | $230,000 | $0 | $0 |
| $230,000 | $30,000 | $260,000 | $10,000 | $1,500 |
| $240,000 | $15,000 | $255,000 | $5,000 | $750 |
| $280,000 | $30,000 | $310,000 | $30,000 | $4,500 |
| $260,000 | $40,000 (2026–27, $7,500 over the cap) | $300,000 | $32,500 | $4,875 |
In the last example, the $7,500 above the 2026–27 cap is excess. It is added to taxable income and taxed at the marginal rate (less a 15% offset for the tax the fund paid), so Division 293 only applies to the $32,500 within the cap.
Who gets caught
- Your employer’s 12% super guarantee counts as a concessional contribution. In 2025–26 the maximum contribution base meant the guarantee could be up to $30,000, and in 2026–27 it can be up to $32,499.60 on the $270,830 base, so a high salary alone can use the whole cap.
- Salary sacrifice and personal contributions you claim a deduction for also count.
- Investment losses are added back, so negative gearing does not keep you under the threshold.
- A one-off spike in income, such as a large capital gain, can push you over the threshold for that year only.
Paying a Division 293 assessment
You don’t work it out in your tax return. After you lodge and your fund reports your contributions, the ATO sends a separate Division 293 notice of assessment. You can pay it with your own money, or elect within 60 days to have it released from your super fund; the payment due date stays the same either way. If the contributions went to a defined benefit fund, the tax is deferred into a debt account until a benefit is paid.
FAQs
Is salary sacrifice still worth it if I pay Division 293?
Usually yes. Even at 30% in total, contributions are taxed less than income at a 39% or 47% marginal rate. The saving is smaller than for people under the threshold, so weigh it against having the money locked in super until you retire.
Does Division 293 apply if I’m under the cap?
Yes. Division 293 depends on your income plus contributions, not on whether you have used your cap. You can be well under the cap and still pay it.
Why is my assessment different from this estimate?
The ATO uses the contributions your fund reports, which may include amounts paid in the year that relate to earlier periods, and it may include items not covered here, such as super lump sums taxed at a zero rate or family trust distributions.
Related calculators
- Salary Sacrifice Super CalculatorTax saved by salary sacrificing
- Super Guarantee CalculatorYour employer’s 12% contributions
- Tax Refund Calculator 2025–26Your refund or tax bill
Sources
- ATO: Division 293 tax threshold and rate
- ATO: Division 293 tax on concessional contributions by high-income earners · income, contributions and payment
- ATO: Contributions caps · 2025–26 and 2026–27
- ATO: Super guarantee rates and maximum contribution base
Figures current as of 13 October 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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