$250,000 threshold Extra 15% on contributions
Division 293 Tax Calculator
If your income plus your concessional super contributions come to more than $250,000, the tax on those contributions doubles. Division 293 adds an extra 15% — turning the 15% contributions tax into 30%. Work out what you would owe.
1 Enter your income2 Enter your contributions3 See the extra tax
Step 3 · your result
Division 293 tax
$0
extra tax on your super contributions
- Total assessed
- $0
- Amount over the threshold
- $0
- Contributions taxed at 293
- $0
- Total tax on those contributions
- $0
- Your marginal rate compared
- —
Source: Australian Taxation Office — Division 293 tax on concessional contributions by high income earners, read in full 13 October 2026. General information only, not personal financial advice.
The threshold
| Period | Division 293 threshold |
|---|---|
| 2017–18 onwards | $250,000 |
| 2012–13 to 2016–17 | $300,000 |
It has been $250,000 since 1 July 2017 and is not indexed annually, so more people cross it each year as wages rise.
What the two halves mean
| Everyone else | Above the threshold | |
|---|---|---|
| Tax on concessional contributions, up to the amount over the threshold | 15% | 30% |
| Who pays it | The fund | You, via a Division 293 notice |
| Paid from | Your super balance | Your super or your own money |
The important detail is which contributions get the extra tax. It is not your whole balance of contributions. It is the smaller of the amount by which you went over $250,000 and your concessional contributions for the year. Go over by $5,000 with $15,000 of contributions and only $5,000 is taxed at the higher rate.
Working out your Division 293 income
The income side uses the same calculation as the Medicare levy surcharge, disregarding reportable super contributions. Add up:
- taxable income — assessable income minus allowable deductions,
- total reportable fringe benefits amounts,
- net financial investment loss,
- net rental property loss,
- net amount on which family trust distribution tax has been paid,
- super lump sum taxed elements with a zero tax rate.
Note what is not in there: salary sacrifice is not added back as income. It enters the sum on the contributions side instead. And a negatively geared property pushes the number up through the net rental property loss — so in a year you sell, the same property can tip you into Division 293.
Deferred tax on defined benefit interests
Where the tax relates to a defined benefit interest, payment is deferred until a super benefit is paid from that interest, and the ATO keeps a debt account. That debt is indexed at the average 10 year Treasury bond rate for the year:
| Income year | Average 10 year Treasury bond rate |
|---|---|
| 2025–26 | 4.6148% |
| 2024–25 | 4.2906% |
| 2023–24 | 4.2482% |
| 2022–23 | 3.6096% |
| 2021–22 | 2.1124% |
If you are in an unfunded public sector defined benefit scheme, the deferred debt can keep growing for years before it is ever collected. It is worth knowing it exists.
How to stay under it, legitimately
- Watch the total, not the cap. Your employer's super guarantee uses up room first. On a high salary and the 12% rate, employer super alone can approach the concessional cap before you sacrifice a cent.
- Salary sacrifice is still worth it, just less so. Above $250,000 the concession is 30% against a 45% marginal rate — still a 15 cent saving per dollar, plus the Medicare levy.
- Be careful with a big catch-up year. Using carried-forward cap amounts increases your concessional contributions for Division 293 purposes too.
- Use the non-concessional side instead. After-tax contributions do not attract Division 293 — but they are capped and are not deductible.
Frequently asked questions
What is Division 293 tax?
An extra 15% tax on your concessional super contributions, on top of the 15% your fund already pays. It applies when your income plus those contributions comes to more than $250,000 for the year — which means high earners get a 30% tax on their concessional contributions instead of 15%.
How is the tax worked out?
It is 15% of the lesser of the amount over the threshold and your Division 293 super contributions. The ATO's own example: Division 293 income of $240,000 with $15,000 of contributions is $255,000, which is $5,000 over the threshold. Tax is 15% of $5,000 — $750.
What counts as Division 293 income?
The same income calculation used for the Medicare levy surcharge, but disregarding reportable superannuation contributions. That is taxable income, plus total reportable fringe benefits amounts, plus net financial investment loss, plus net rental property loss, plus the net amount on which family trust distribution tax has been paid, plus super lump sum taxed elements with a zero tax rate.
I only went over once. Can that happen?
Yes. Division 293 is assessed year by year, and events that spike your income — a termination payment, back pay for several years, selling an investment property — can push you over the threshold for a single year and never again.
Do carry-forward contributions count?
Yes. The ATO is explicit: if your concessional cap has been increased by carried-forward amounts, all contributions counted under the higher cap are counted for Division 293 purposes too. A big catch-up year can trigger Division 293 even if your income did not change.
When do I pay it?
You get a Division 293 notice after the ATO has both your tax return and your fund's contribution information. You can pay it from your super or from your own money. If the tax relates to a defined benefit interest, payment is deferred until a benefit is paid, and the deferred amount is indexed at the average 10 year Treasury bond rate — 4.6148% for 2025–26.
Related
- Contributions caps — the concessional cap divided by Division 293
- Carry-forward contributions — catching up — and why it can trigger Division 293
- Medicare levy surcharge — the income test Division 293 borrows