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Australian advice

Division 293: Additional tax for high income earners

What is Division 293 tax?

Division 293 tax is being introduced from the 2012–13 year to reduce the tax concession on superannuation contributions for individuals with income greater than $300,000 a year. ATO has recently started issuing the first assessments.

The Division 293 tax was announced as part of the 2012 Federal Budget as an additional tax on superannuation contributions for higher-income earners. The additional tax, which applies broadly to taxpayers whose income exceeds $300,000, increases the concessional tax rate applied to contributions to Australian superannuation funds from 15% to 30%. By signing a release form taxpayers can direct that the additional tax is paid by the superannuation fund instead of from their own net income, but nevertheless this change will have a significant impact on the retirement funds of high-income individuals.

Further information

For any further information please email Jack Gergi at gergij@tax.uk.com