Division 293 Tax Calculator
Calculate the extra 15% super tax that applies when your income plus concessional contributions exceed $250,000.
How Division 293 Tax Works
Division 293 is an extra 15% tax on concessional super contributions for high-income earners. It was introduced to reduce the tax concession available to those earning over $250,000, ensuring they pay at least 30% on their super contributions instead of the standard 15%.
The $250,000 Threshold
Division 293 applies when your income for surcharge purposes plus your low-tax concessional contributions exceed $250,000. Income for this purpose includes:
- Taxable income (including salary, business income, rental income)
- Reportable fringe benefits total
- Total net investment losses
- Reportable employer super contributions (salary sacrifice amounts)
Calculating the Tax
The tax is 15% on the lesser of:
- Your total concessional contributions, or
- The amount by which your combined income exceeds $250,000
For example: income of $260,000 and contributions of $27,600 — combined = $287,600, which is $37,600 over $250,000. The Div 293 taxable amount is min($27,600, $37,600) = $27,600. Tax = $27,600 × 15% = $4,140.
Is Salary Sacrifice Still Worth It?
Yes, for most high-income earners. Even at a 30% effective super tax, those on the 37% or 45% marginal rate save 7% or 15% respectively compared to receiving the income. The break-even point is only if you could invest the funds personally at equivalent returns with lower tax — which is rarely the case given super's long-term compounding and eventual tax-free retirement benefits.